A Research on the Root and the Regulatory Policy of Informal Finance in China's Rural Areas

The root of informal finance in China's rural areas lies in the existence of people's demand.Not only is informal finance in rural areas deeply embedded in China's rural society and culture,but also perfectly matches China's rural social order.Therefore,rural informal finance has great self-viability and sustainability.The policy implications of the conclusion are that it is not reasonable to suppress or eliminate the informal finance,nor is to formalize the informal finance compulsorily.The right thing for us to do is to deregulate it and guide the linkage between the formal and informal finance,thus help the formation of the integrated financial market in rural areas.