The Research On Legal Issues In Standardization Development Of The Folk Credit In China

With the fast economic development in China, folk credit, especially organizedlending activity has developed rapidly and made grant complement to the shortage offinancial resources in the private economy and the rural economy. However, becauseof the strict control of the financial industry, there are not enough policies and laws tosupport the folk credit. In the process of the folk credit activities, the problems ofhigh rate, being easy to spread into a criminal and disrupting the order of the nationalfinance exposed. These problems have seriously hampered the development of thefolk credit and even restricted balanced economic development in our country, thus,it’s quite necessary for us to lay a foundation for the folk credit’s standardizationdevelopment in the future through the study of the existing legal problems of privatelending. As a complex social phenomenon, scholars have been unable to give aprecise definition to the folk credit; also, the existing laws are more to ensure orderand security of the country’s financial industry, so there are many negative definitions,which makes the general public who heard the business of lending activities associateto illegal deposit from the public, illegal fund-raising, usury and so on. Theseconcepts and private lending have always been tangled together, but private lending isby no means equal to the illegal activities. By analyzing the effect of the folk credit tothe national economy, we can clearly recognize that the folk credit is a double-edgedsword and it’s positive effects on our country’s economic development and financialreform can not be ignored. by selecting and analyzing “the case of Wu Ying inZhejiang”,“bosses running away in Wenzhou” and “Libin Jin’s self-burning inBaotou”, which are popular folk credit events, makes us fully understand the objectiveproblems of the private lending activities. by summarizing and organizing the relevantlaws and regulations of our country at this stage, we can get the institutional defectsof the folk credit.the folk credit in China should establish a uniform legal philosophyand adhere to choose a standardized and transparent developing path. Under theguidance of the correct legal philosophy, by taking specific safeguards as dividing thetypes of the folk credit, improving the responsible qualitative and responsibilitysystem, constructing the information exchange platform and establishing theregulatory regime, the folk credit can maintain it’s positive effects, control risks, andprovide the impetus for China’s sustained economic development.