The government plays a system supply and market regulatory role in promoting social and economic development. The influence of traditional ideas of “ financial repression ”and “ heavy formal, light informal” , China’s existing financial laws and regulations pay more attention to the formal finance,not the informal financial. There are system supply failures: lack of supporting legal system, imperfect system, lack of effective supervision and management activities. With advantages of high efficiency and low threshold, The folk capital is to the existence of huge market demand. Government should make the system respond to reality, solving the problem of informal finance and healthy development of the rule by law.