The Generating Reasons And Preventive Countermeasures Of Risk Of Rotating Credit Association

There is a dual financial system structure in our country.The rural financial system is not perfect,so farmers can't get enough supporting of money from formal financial;The city's financial system is relatively perfect,but because of the rigid formal financial loan conditions,a lot of private and small and medium scale enterprises can't satisfied leading to existing a lot of potential capital requirements in society.Based on this background,as a kind of folk financial organizations,ROSCA developed rapidly and popularly in coastal areas in China,and as an important way to satisfied with the demands of money of farmers and private and small and medium scale enterprises.Recently,a large number of fall ROSCA has bring the bad influence in not only the economy,but also the stability of the society and the healthy operation of financial markets.Hence,it's significant that study how to prevent the risk,reduce the fall ROSCA and have a effective operation of the financial markets.For the study of ROSCA,this paper applying game theory to analysis the generating reasons of risk of ROSCA,it contains the large scale of ROSCA and the defective restraint mechanism as well as the bad personal reputation and ability.Than the paper verifying it to summarize the prevention mechanism of the ROSCA's risk that contains seven aspects based on comparing the successful with fall case of ROSCA.That is the limit of the number of participants and funds of ROSCA,the ROSCA's members(including the leader)share of ROSCA,the limit of ROSCA's interest,the binding of social capital,the limit of use and purpose of ROSCA's funds,the examination of qualification of ROSCA's leader,the establishment of guidance and legal punishment mechanism of national policy.And than put forward some suggestions of preventive countermeasures of risk of ROSCA from the internal operating standardization and the establishment of the outside regulatory system.That aims to provide a reference for the government to develop relevant civil monetary policy.