On Legal Supervision To Private Lending

In the early stage of reform and opening up, the private enterprise of our country is growing rapidly and playing a positive role in the process of Chinese Market Economy development. It’s becoming an important pillar of our national economy. However, with the development of our market economy, private enterprise also gradually exposed some problems. Funds shortage is one of the serious problems which the private enterprises are facing. Therefore, to solve the capital problem of private enterprise is not only good for the development of enterprise itself, but also helping the development of the national economy. Private lending first appeared in southern areas of China. As the private capital is more and more huge, The phenomena of difficulty to loan for small businesses owners is more and more obvious. Several opening city tried to using this part of private enterprise to SMES, these theories have proved to be right in practices. Now, in many opening cities with rapid economic development, private lending has grown from "underground" to "over ground" and the mind of common people has changed already. Private lending has played more and more important role in solving the financing problem of SMES and activating the local finance.According to the Suggestion by Qiqi (the deputy to the national people’s congress and Chief justice of Zhejiang provincial higher court) at the5th session of the11th national people’s congress, private lending has become a critical point of market-oriented economics development. Accordingly, doing research of legal supervision to private lending is extremely feasible and valuable. This paper consists four chapters. The first chapter mainly deals with the concept of private lending, the different between private lending and related concepts, varieties and characteristics. In chapter two, the reasons of private lending were analyzed. With Wenzhou, Liaoning province as examples, the actuality and problems of private lending were investigated. The third chapter presents the current legislation situation of private lending in details. It was pointed that our rule of law about private lending is not enough and the lacking of legal supervision system. In the forth chapter, I gave some recommendations to perfect the legal supervision of private lending from the aspects of principle, institution and supervision.One of the research methods in this paper is literature-analysis. I seriously analyzed and summarized the relevant information of the legal supervision to private lending through the inspection of a large number of relevant literature and the researches at home and abroad. I also collected the theories from other researchers and the issues of the5th session of the11th national people’s congress. Another method is The combination of theories with practice。 I proposed the methods and solutions to current legal problems of private lending on the current development status in our country. On the basis of clearing the legitimacy of private lending, we should perfect the legal supervision system to bring private lending into the sunlight.