A Study On Rules Of Informal Credit

Recently, the loan funds fall short because of the continuous constrictivemonetary policy and international financial crisis. The businessmen who need fundsurgently turn to informal credit for financial help. Informal credit caused many legaldisputes and may lead to uncertainty of finance and society. The numbers of cases ofinformal credit are increasing recent years and new situations show up. In sum, it isimportant to study the legal regulation of informal credit under the current Chineselegal environments.This thesis bases on the current informal credit disputes and the issues faced bythe judicial practice. The whole thesis can be divided into five parts, includingintroduction, three chapters and concluding remarks.Chapter1deals with basic issues about informal credit. In this chapter thephrases informal credit is firstly discussed. Also, a practical analysis of the informalcredit disputes is studied in this chapter to lay basis for the next chapter.Chapter2deals with the legal validity of informal credit acts. A survey of currentlaw regulating informal credit is discussed firstly in this chapter. Secondly, asystematic analysis of the judicial determination of informal credit is carrying out.The issues of differences between legal and illegal informal credit is also studied.Chapter3deals with suggestions to improve the legal system of informal creditand judicial countermeasure to legal disputes of informal credit. Some practical suggestions are provided by the author to improve our legal regulation of informalcredit.In the concluding remarks, the author reiterates the legislation of informal creditto deal with the increasing informal credit activities.