A Research Of The System Of Legal Regulation Of China’s Private Lending Market

The presence of China’s private lending market stems from between the tension relationship of the market supply and demand to funds and China’s special cultural traditions. It is based on the acquaintances Social Credit to meet the personal financial needs, gradually formed an institution and multi-level private lending market. Out of consideration for financial security, The state has been excessively regulated to the private lending, then leading to the private lending become a gray area drifted outside the formal financial. In the recent years, the SME financing through the private lending, not only the enterprises got development and expansion, but also revitalized the economy. For the factors of the diversification to the participation, the sources and uses of funds range, subtle and strong, weak regulatory, geopolitical strong, making the private lending market become the development of China’s financial markets and prosperity can not miss factor. However, in the private lending market, due to profit-driven capital makes the phenomenon of illegal fund-raising, usury, etc. there is an urgent need to take legal means of regulation to the private lending market.However, because our state has different attitudes to private lending in the different periods. China’s private lending market has not formed a unified regulatory legislative system, the existing financial regulatory regime does not cover it. Existing financial regulatory regime overlap of the private lending market regulatory body, the lack of legal regulation access and market exit, urgent, through the development of specialized "Private Lending Act amend the relevant laws and regulations, improve, legal and regulatory legislation. Principle in China’s private lending market regulated by the laws of the process, it is necessary to follow the distinction between the treatment of different forms and protect the interests of creditors, consider the costs and benefits of the principle of minimum regulatory resources invested to obtain regulatory benefits, and strive to create a fair competitive environment.To build the system of legal regulation of China’s private lending market, Firstly, we should establish the Shoji lending subject access system to relax the control of the borrowing companies, mutual rights and obligations to regulate the subject qualification. In addition, the players determine private lending official regulatory bodies through legislation and regulation, the terms of reference and procedures to regulate its access mechanism. The second, By formulating private lending market exit criteria to improve the private lending market exit approval process through the development of it, Perfect folk lending market exit of the examination and approval procedures and establish a deposit insurance system to exit mechanisms and procedural requirements.This paper is divided into three parts:the first part introduces the basic theory of legal supervision of private lending; the second part introduces the current situation of China’s private lending is legal supervision and the existing problems; the third part mainly elaborates the proposed regulatory system of private lending laws of our country perfect.