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Socialist transformation of private lending the civil finance almost vanished

civil finance industry carried out socialist transformation

beginning of the founding of new China, China regulates the clear civil private finance. After reorganization of clearance and civil contracted in the private financial sector. "The beginning of 1949, the national capital Bank a total of 1032, in June 1950, after treatment, the national capital Bank has 357, 64.5% less than in early 1949. Shanghai pawnshop in 1949 to 529 in the number dropped to 206. Suzhou 1949 there 42 pawn, once the abnormal development of 92, after 1950 years after the reorganization of the approved operators only 28. "(The study of private lending in China, Wang Chunyu, Harbin University of Commerce, 2010)

from 1950 to the end of 1952, the Government" rectify the clear "on the basis of, and promotion of private finance from" public-private partnership "to the" socialist transformation ". After the socialist transformation after private silver industry are grouped into a co-operative banks; Hock disappeared after a restructuring of the industry, into a small mortgage loan Department of the people's Bank of China, and ultimately incorporated into the system of the people's Bank of China.

policies limiting private finance development

in this period, the Government used an executive order to civil society the private financial sector to "socialism", but has also developed a number of measures to restrict civil and private financial sector. For example, "limit private line Zhuang of credit expansion, ban State, and Enterprise institutions, and economic cooperation organization, and school, and civic until private line Zhuang deposits, to control its sources; ban line Zhuang issued promissory notes to control its credit created", "limit private line Zhuang of funds using, ban its and camp commercial hoarding, ban purchase non-business by required of real estate; ban its engaged in gold and Silver Exchange of sale or mortgage loan" and so on. (Study of the private lending in China, Wang Chunyu, Harbin University of Commerce, 2010)

rural folk free borrowing: from encouraging to criticism

early in the rural areas, the Government encourages free loan and consolidation loan-sharking. August 1950 in the people's Bank of China Head Office District Governor of people's Bank pointed out in meetings decisions on several issues: "strong proponent of restoration and development of rural private loan, we should be combined with local party and government sector lending policy, encouraging the recovery of private lending and development. Interest rates do not limit the number, creditor's rights should be protected. "In January 1952, head of the Northeast Council issued instructions think rural usury undermine the development of the rural economy, class divisions, is illegal and should be combated, suppression, fire fight in the second, two years rural usury.

the end of 1953, the "transition" released, calling for "socialist transformation of agriculture, must pass through the cooperative way." Rural cooperatives in the form of one, namely the development of rural credit cooperatives. Since then, the people's Bank of China established in rural credit cooperatives in the country, while encouraging free borrowing as "freedom of critical borrowing replaced private borrowing."

above, the development of rural credit cooperatives, as part on the rural socialist transformation. So instead of private lending is clearly not a pure economic issue, but a political mission. Therefore, the voluntary society for rural credit cooperatives were originally farmers, quitting the principle of freedom, real became the Government forced farmer's Association. "A lot of new credit unions in a rough business, management turmoil, the plight of lack, loss, corruption, misappropriation. "(China's finance development studies (1949-1957), Zhao Xuejun, P116)

after the socialist transformation, borrowing almost disappeared

after the success of socialist transformation, borrowing by the State regime of extrusion and almost vanished, only a personal form of mutual friendship between lending private loans there, the scope of its activities and is quite small. In agricultural cooperatives and communes, private borrowing still exist in a certain range.


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