Abstract
Linxia Hui Autonomous Prefecture is a Muslim community in China, driven by the Mercantilist ideas of Islamic finance, whose financial industry presents the fast growth momentum in recent years, and the private lending activities are prosperous and frequent. This paper, by using the method of questionnaire and on-the-spot investigation of the region, makes a detailed analysis of the present status quo of this informal finance, the existing problems in the private lending, as well as the causes of such problems, the specific use of folk lending in the region, lastly, the article puts forward the corresponding solutions and suggestions.
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