Research And Development Of Informal Finance In Gansu Province

With the rapid development of China’s economy, the influence of folk finance to the whole society deepened, become an integral part of China’s financial system,especially for the small and medium-sized enterprise financing an effective supplement to. With the national implementation of the western development policy,the economy of Gansu province has developed rapidly, but the Gansu Province as the Chinese layout is relatively backward provinces, the folk financial development is not mature, the development process encountered a lot of problems. So it is necessary to make a systematic study on the development of informal finance in Gansu Province,to better serve the economic development of Gansu province.This paper describes the development of informal finance background Gansu province, meaning, purpose, and related literature, as well as the difficulties and innovations that may be encountered during the study; secondly to study the definition of informal finance and related theories, for subsequent studies to lay a solid theoretical foundation; again, the current development of Gansu Province, this chapter focuses on informal finance for informal finance in Gansu Province, and focuses on the existence of the reasons to do, to find out at the end of chapter through Gansu and Zhejiang contrast Provincial informal financial shortcomings and learn from them in the development process; in the empirical part, use of fuzzy AHP method in the six major factors affecting the development of informal finance to sort Gansu Province,to identify the various factors on the informal finance the impact of development and analyze how these factors influence the development of informal finance, obtained financing efficiency> Social capital requirements> private capital adequacy>Development Financial Institutions> loose monetary policy > conclusion of regional culture; and finally, by Conclusion the empirical part of Gansu Province, the development of informal finance in internal control, government regulation, the establishment of credit system and accelerate the feasibility of proposed legislative and other comments in efforts to allow informal financial Gansu better and faster development, making it a powerful complement formal finance.