Research On Chinese Non-Deposit Lending Organization Regulation

Non-deposit lending Organization is a kind of informal finance entity participates in Chinese credit market,which could also help to meet the financing requirements of business entities,improve the credit market structure,and optimize the allocation of financial resources.However,Non-deposit lending Organization has not been regulated under Chinese financial regulatory system;the < Regulations on Non-deposit lending Organization(Draft for Comment)> is not formally implemented.The regulation of Non-deposit lending Organization is rural part of folk finance regulation.This paper is aim to do a research on Chinese Non-deposit Taking lenders,clarify the definition of Non-deposit lending Organization,explicit the necessity of regulation and supervision orientation,summarize and draw the experience of oversea area,explore the way for completing the regulation on Non-deposit lending Organization.The following chapters consist this paper,and mainly about:The first chapter is about the definition of Non-deposit lending Organization.Main content in this chapter is summarize the definition of Non-deposit lending Organization,and analyze its two characteristics—operate lending business and non-deposit taking.As a commercial law entity,its business nature and rentability make the difference from civil lending behavior.Meanwhile,the non-deposit taking nature make the distinction on financial institutions such as commercial bank.The second chapter is about the necessity of regulating the Non-deposit lending Organization.We focus on the advantages and risks of Non-deposit lending Organization.As a kind of spontaneous commercial entity,Non-deposit lending Organization obeys a set of informal constraints which is known as low transaction costs,and with lending models in line with folk financing requirements,the legalization of Non-deposit lending Organization is a major topic.Furthermore,the operation of Non-deposit lending Organization is risky,sometimes the borrower is vulnerable,and proper regulation is essential.The third chapter is about the basic orientation of regulating the Non-deposit lending Organization.The regulation on the Non-deposit lending Organization shall based on the principle of non-prudential supervision and the principle of protection of vulnerable borrowers.Non-prudential supervision is guiding regulation and differ from prudential supervision on commercial bank,also the lending behavior may damage the benefits of vulnerable borrowers,the regulation rules shall base the vulnerable borrower protection principle.The fourth chapter is about the issues exists in present Non-deposit lending Organization.Subject to the length of the paper,we choose the access issue and collection issue as discussion object,specifically includes too high-access threshold on Micro credit company,not differentiated by region,and higgledy-piggledy debt collection market.The fifth chapter is about the regulation methods and experience of oversea Non-deposit lending Organization.In order to keep consistent with the context,we still talk about the access regulation and collection regulation of foreign countries and regions,firstly summarize the regulation methods,and then conclude the regulation experience which can be used for reference to China.The last chapter is about the complete of regulation on Chinese Non-deposit lending Organization.According to the regulation orientation and the experience overseas,we would offer proposals on the access regulation and collection regulation.To the access regulation,we mainly suggest that we should formulate rules on license application,registered capital and executive qualification;to the collection regulation,we mainly suggest that we could regulate on the collection object,collection behavior and stipulate punishments rules.