Folk finance is informal， and its operation modes mainly include Folk lending，micro-credit and so on. At present， folk finance is an important part of inclusive finance. Active folk finance plays an important role in supporting the development of real economy. With the application of the Internet information technology， some new financial organizations appear constantly， because of the lack of unified regulation law and regulatory agencies， folk financial regulation is almost blank， resulting in a large amount of illegal events such as “make off with money， out of contact， violence dun” ，Shandong has become a major disaster area of the Internet finance， P2P， small loans company is make escape with money， investors lost seriously. In order to maintain the order of inclusive financial market， the local financial regulations are comprehensively implemented in Shandong province in 2017， and strictly regulated folk finance with remarkable results.