Research on Modes and Operating Mechanism of Informal Finance

Abstract:

Informal finance exists in developed countries and in developing countries, the form of informal finance is diversiform, but operational mechanism of informal finance is essentially similar. Nowadays, in china informal finance’s contribution for whole macro economy is bigger and bigger, but up to the present our central government has not established the interrelated policies and regulations in order to make informal finance legal and rational. In order to make them support the whole macro economy better and make different regions choose suited modes among the different forms of informal finance, this paper study on the informal finance’s modes and operating mechanism from driving mechanism-interest rate mechanism, coordination mechanism-financing method, operating principle, controlling mechanism, security mechanism-withdrawing market mechanism in order to improve further collocating-capital efficiency and function for economic development positively.

• Periodical: Advanced Materials Research (Volumes 926-930)
• Pages: 3898-3901
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.926-930.3898
• Online since: May 2014
• Authors: Shou Bin Zhou*, Pei Zhou
• Keywords: Informal Finance, Operating Mechanism, Organization Pattern

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