Research On Legal Regulation Of Folk Loan

In recent decades, the rapid development of China’s private economy, while itsrapid development in the reform of the financial system has become stagnant, privateSMEs need to develop the traditional financial system can not keep up with therhythm of the private economy, which is precisely to Our private lendingopportunities and provide development opportunities. Everything on earth has its twosides, although the private lending for development of private enterprises has played ahuge role in promoting and traditional financial institutions to help ease the lot ofpressure, while providing funding for the development of private enterprises in thecourse of an occasion, the growing scale, plays an important role in China’s economicdevelopment among. However, private lending, although up for the lack of formalfinancial existence, led the formal financial development, we can not ignore itsdrawbacks. Due to poor self-discipline of private lending, to effective supervision ofthe financial regulatory authorities more difficult, resulting in private lending deviatefrom the normal track of development, and even some private lending deterioration.What is more, some of the so-called investors under the guise of private loans,long-term illegal activities on our private lending market caused a serious impact. Forthese reasons, our people generally believe that private lending is usury, is notlegitimate, resulting in a long time in the underground activities of private lending,financial regulatory authorities have vigorously rectify its implementation, strictsupervision. In fact, this view of private lending is one-sided, the private lendingsimply equated with usury and its inventory, not only can not solve the currentproblem of the existence of private lending, and is likely to trigger a new chainreaction, resulting in China’s economy slow development, social progress stalled. Ifcontinued laissez-faire free in the regulation of private lending, is bound to increasethe financial risks and social risks. So, how will the private lending from the groundinto the ground, how it reasonable regulation, is a priority of the current private lending.This paper is divided into four chapters, starting with the first definition of theconcept of private lending, private lending to the concept of a current overview,outlining its characteristics and classification. Secondly demonstrates the existence ofthe current private lending inevitability, come to the motive and private lendinginstitution relatively formal financial advantages of private lending is based on theexistence of an objective, and analyzed and summarized its development trend. Thenfollowed by introduction of the current domestic and international private lending inmajor countries, and to compare and study each country private lending, analyzed andsummarized to learn from. Finally, according to previous studies of private lending,concluded the study, and make recommendations that private lending as aninstitutional innovation is a market behavior, the government should ban theirexistence, should acknowledge its legitimacy, but in its the development processshould be taken when there is a problem of reasonable and effective regulatorymeasures to address the problem of the existence of private lending, private lending inorder to gain a firm foothold in the country’s economic activity which, in order tobetter serve China’s economic construction.