The Legal Regulation Of Private Lending In China

With the development of market economy, the private economy in the proportion of theeconomy is gradually expanding. It has been and will continue to play an important role in therevitalization of the local economy. However, what can not be ignored is that the financingproblem of small and medium-sized enterprises is becoming more and more serious, and theformal financial institutions tend to meet with the need of state-owned enterprises of less risk,So the financing channels of private economy of small and medium-sized enterprise isseverely impeded. Under the livelihood, small and medium-sized enterprises have to seek thehelp of folk, and folk lending phenomenon is spreading trend. Shun Da-wu case andWu Yingcase involves borrowing events occur frequently, causing a hot debate in the society from allwalks of life, and people dispute for borrowing has not stopped. Private lending have existedin our country for a long time, but for a long time for the sake of national financial safety andprivate lending risk concerns, our country take strict control policy of borrowing. So the folklending always wandering in a gray area, and has been operating in the formal nationalfinancial "outside the system". But with the macro-control of the rapid development ofChina’s economy and the credit crunch and continued tight financial capital supply, the smalland medium-sized enterprise demand for borrowing become more and more strong. How toimprove China’s private lending legal system has become an urgent research subject. This paper studies our country folk loan and its legal regulation method of comparative isanalysis and value analysis. In addition to the introduction and conclusion, this paper isdivided into three parts:The first part is an overview of private lending. This part analyzes the concept, the folkloan characteristics and the main form of expression, and discusses the definition of folk loan;at the same time, using the related theories of law and Economics Analysis on the regulationof lending legal folk value, demonstrates the rationality and necessity of existence of privatelending.The second part is the present situation for our country folk borrowing and its legalregulation. This part discusses the present folk lending laws and regulations and the financialregulatory system problems, and analyzes the reason of current situation of China’s privatelending from the high pressure system of financial policy and the government interests andpublic interests of the imbalance.The third part is the legal regulation of private lending in China suggestions. Through thecomparison of the legal regulation of civil borrowing foreign experience, put forward todevelop specialized private lending legal norms; modify the legal norms conflict, uncertaintyexisting in law; a multi-level supervision system; establish recommendations and the mode ofsupervision and mixed compliance supervision and risk supervision combined. At last the writer proposes to construct efficient public information platform and establish the integrationof services and other related supporting measures, in order to play its biggest role of privatelending.This article’s innovation mainly manifests in: using the related theories of law andeconomics, analyses the rationality and necessity of the folk lending there; the combination ofrelevant cases in practice, analysis of the status quo of China’s nongovernmental debit andcredit, and puts forward perfect suggestion of the relevant measures for establishing anintegrated and efficient service mechanism of public information platform.