Borrowing To Regulate The Development Of Legal Issues

China’s private lending to small and medium-sized private enterprisesdevelopment and growth to provide fund, for rural residents production life to providecredit support, to compensate for the formal financial institution loan blank under thepremise of formal financial institutions, promote the improvement of mortgage system.Private lending itself also in the service of financial vulnerable groups whilecontinuing to expand the scale of assets, growing, to the health of our nationaleconomy sustainable development plays an important role. However, due to its richfolk loan characteristics, system defect and capital profit, plus plenty of folk capitalsupply, strong private capital demand and weakening of the formal financialpromotion of private lending is active with each passing day. While the governmentborrowing regulation has been without charge state, so far only one local regulationson local folk leasehold behavior, most of their free development. As the civil lendingrates continued to increase, borrowing and gradually attract huge amounts of moneyinvolved, even unsecured credit funds, has accumulated a considerable financial riskand social risk, part of the field of private lending is metamorphic, become the moneylaundering crime tools and investment. Therefore, how to correctly deal with theproblem of how to regulate the private lending, its development, and its incorporationinto the scope of regulation, are theoretical and practical problems need to be deeplystudied. This paper described the current situation proceed with from borrowing,altogether is divided four chapters. The first chapter is the current our country folk debit and credit situation analysis, discusses the necessity of the specification. Thesecond chapter of the folk debit and credit risk analysis, discusses the risk arisingfrom the reasons and how to guard against risks. Borrowing due to mechanisms andcongenital inadequacy and the financial order, for investors, the risk of risk, andmakes an analysis of the reasons, that the current our country’s folk debit and creditrisk, banks must pay close attention to the liquidity surplus of enterprises, governmentmust be in strict audit related enterprises on the basis of, positive regulation, need totake corresponding measures to control risk. The third chapter analysis on folk debitand credit interest rates must be of government pricing. The fourth chapter proposedlegislation for private lending institutions set up market access and withdrawalmechanism. Socialist market economy and the increasingly growth of the capitalrequirement and the backward financial institution Credit Service Vacancy formed bycontradictions, for the survival and development of private lending has left a vastimagination, Erdos ghost town now has quietly emerged, nationwide folk creditlegislation and implementation has been imminent.