Study On The Legal Supervision Of China’s Folk Loan

In recent years, along with the private economy and the rapid development of smes,private lending presents a piece of unprecedented prosperity, its rapid development has notonly alleviates the small and medium-sized enterprise financing needs, but also promoteChina’s economic and social development; however, since a long time, the legal supervisionand lack of private lending, private lending irregularities, folk debit and credit crisis happenedone after another; in2011, a “usury crash”,“owner of the private sector debt run away” thefocus of news events, is borrowing from behind the rush on the stage, got the wide attentionof whole society, strengthen the legal supervision of private lending is crunch time, this notonly folk urgent need, is also the government years begin to solve major economic, socialproblems. During2011eleven, Premier Wen Jiabao pointed out when Wenzhou survey, folkdebit and credit to standardize management, risk prevention, to promote its healthydevelopment. Therefore, the folk credit has not want to legitimate, legal regulation, but howto legalize, how regulatory issues, in order to adhere, guide and regulate the private lending,so as to better promote China’s economic and social development.In this paper, briefly describes the existing research results, this paper research value,innovation and research methods.In the first chapter, clarify the borrowing of the concept, has analyzed our country thestatus of private lending, the development of private lending stages were briefly introduced,the development of private lending in occurrence new characteristic, new trend undertookcomprehensive summary and conclusion, the rationality of the existence of private lendingfrom the fund supply and demand, private lending itself the characteristics, the current ruralsocial features three aspects to carry on the effective demonstration.On folk debit and credit to legal supervision issues, the second chapter discusses the folkloan and the necessity of legal supervision. Borrowing lack of legal supervision, itsmalpractice is shown increasingly, overcome the disadvantages of private lending is necessaryfor private lending legal supervision.The third chapter of the legal status of private lending is reviewed, the existing problemsin the supervision of interpretation. First of all, our financial supervision and legal althoughmany, but borrowing regulation of the specialized law, folk debit and credit supervisioncannot can depend on. Secondly, private lending long walk to the edge of the law, legal and regulatory problems, not only regulatory law, no clear regulatory agencies and regulatoryprograms; in regulation, coincidence compliance supervision, risk control ability.The fourth chapter decided our country folk credit legal supervision of the basic train ofthought. To establish the efficiency and fairness into consideration and freedom and orderharmony concept of regulation, emphasize the compliance supervision and risk supervisioncombined supervision mode; in the regulatory means, should multibarrel falls together, payattention to beforehand control, and to establish a fair, impartial, open, prudent, coordinationand supervision principles.The fifth chapter proposed the construction of China s private lending in the legal systemof supervision suggestions. First, in the basic legal system, one is to establish a perfect privatelending, the related laws and regulations, two is the deregulation of interest rates, the three isto establish standard folk lends money the legal supervision mechanism, the four is tostrengthen market monitoring, five are in support of small loan company and the community,the development of rural banks. Secondly, in the supporting mechanism, one should set up theindustry association, strengthen industry self-discipline supervision; two is the establishmentof deposit insurance system of rural financial institutions such as banks; three is theestablishment of social credit system, as a folk leasehold both supply and demand ofconstruction objective, impartial social credit platform. The four is to increase the folkfinancial fiscal, tax support.