Research on Legal Issues of Folk Credit in China

Since reform and opening up, China is changing from capital poor countries to capital power. The scale of folk credit expands day by day. It is increasingly influnce the economy and arouses widespread concern. Folk credit has double function. On one hand, there is a certain positive role in promoting economic development. On the other hand, it has negative effects on maintaining social stability and guaranteeing the steady economic development to some extent. The management mechanism of folk credit in China has drawbacks. It needs us to improve the relevant laws and regulations and regulate folk credit to promote its development.