Study On Legal Regulation Of Folk Loan In China

Folk loan refers to the lending relationship which is different from the loan business of formal financial institutions, which occurs between or among citizens and companies or other organizations, and whose object is currency. Since China introduced the Reform and Opening up policy and developed the market economy, the Folk loan in our country has been more and more active; the transactions related have been more and more frequent, there for problems caused by this phenomenon are becoming more and more serious. Folk loan has its own unique legal characteristics, and it also has unique form different from the loan business of formal financial institutions.In the legislate aspect, there is no specialized statute to regulate Folk loan yet, only some departmental bills involves it. Even so, it not means that none legal regulations are for Folk loan, because we can find many rules for it in the departmental bills from different angles. Some of these rules are recognitions of Folk loan, they protect its legal status; some of these rules are regulations to guide and regulate the acts of Folk loan, so that the negative effects can be minimized; some of these rules are strict limitations to the existence and development of Folk loan. As we know, Folk loan disputes are very common in the judicial practice, but there are still many difficulties and controversies due to the legislative vacancies and lags, so it needs our further solutions and clarifications.There are problems as follows in the legal regulations of Folk loan in our country:The legal rules for Folk loan are too scattered; The coordination between these legal rules are very poor; Some related legal institutions are seriously lacked; The subject of Folk loan is not very clear; The judicial boundary between Folk loan and other illegal behaviors is not obvious; The legal supervision of Folk loan is absent. Drawing lessons from the experience overseas for the legal regulations of Folk loan in China, there are suggestions as follows:Make a special law for Folk loan; Construct some related legal institutions; Reduce some limitations for Folk loan admittance; Make a clear judicial boundary of Folk loan; Order one specific government department to strengthen the supervision on Folk loan.