The Limits Of Legal Regulation Of Folk

In recent years, the legalization of private lending has been becoming fiercer, which shows the great expectation of people in the new era on the legal status of private lending. But from reasonable perspective, the government should separately regulate the private lending for their distinctive nature. The private lending can’t be easily legalized but should be confirmed as well as regulated. Plenty of researches on this topic focus on the regulations situation, legalization and the interest regulation of private lending while nearly no researches is on the boundary of state intervention. In the author’s opinion, the boundary on regulation of private lending is the first question we should figure out before establishing more effective regulation system.This article will apply the basic principles and notions in state intervention to the private lending fields for the purpose of accurately defining the boundary between the state intervention and market freedom.This article includes five chapters. Chapter Ⅰ will introduce the basic theory of private lending, which contains the definition, format and the categories from law effect perspective of private lending;Chapter Ⅱ, the author will introduce the present regulating system of private lending and rethink the private lending effect between enterprises from a behaviorism perspective, the "one size fits all" interest rate cap regulation wait to be verified, the boundaries between the private lending and illegal fund-raising needs to be further clarified. All abovementioned will lay a solid foundation for the improvements of the regulating system on private lending.Chapter Ⅲ will mainly focus on the notions and principles the state should hold when intervening the private lending. When intervening the private lending, the state should adhere to the financial freedom as pilot, the financial efficiency as the core, the equality as the fundamental, and the financial order as the goal. At the meantime, the state should insist on the following principles, combine the authorization and limitation of state intervention, distinct the regulation in accordance with the ownership of the funds, controlling the intervening cost and combination of distinctive regulation and key regulation.In chapterⅣ, the author discusses two important factors when defining the boundary between private lending and illegal fund-raising. One is the scope of "social uncertain public" and the other one is making the purpose of the funds as one of the standards when defining the crime of illegal fund-raising.Chapter V refers to the perfect recommendations to the private lending regulating system, include two essential parts. One is establishing the market access system for commercial private lending and the other one is the establishment of multi-level interest rate control system, all of these will provide institutional recommends for improving the private lending regulating system.