Research On The Legal System Of Private Loan Risk Supervision

Private loan makes a great contribution to our country’s economic prosperity anddevelopment, and as the beneficial supplement to the formal financial, the activity anddevelopment of private loan play a key role in solving financing difficulties of small andmedium-sized private enterprises, individual businesses and farmers and other economicentities.However,we must strengthen the supervision of private loan risks,because privateloan itself contains huge credit risk, management risk and system risk and other financialrisks, in order to play private loan’s full positive effect on promoting our country’sreform of the financial system and fast and steady economic growth.The paper is divided into four parts altogether.In the first part, the general legal theory of private loan risk supervision is mainlyintroduced. Based on the meaning, forms of existence and causes of formation of privateloan, this paper has analyzed the inherent risks of private loan, mainly including creditrisk, management risk and system risk, and this paper has analyzed the necessity ofprivate loan risk supervision taking the public interest theory and the theory of financialextemalities as the angle of view.In the second part, the system of foreign private loan risk supervision is mainlyintroduced and an evaluation is made. By comparing the private loan risk supervisionsystem of the United States, Japan, Germany and Hong Kong with our country’s, thispaper makes a conclusion that the system of foreign private loan risk supervision isrelatively more perfect than our country’s in supervisor, market access of private loan andrisk supervision after market access, which is worth learning for our country.In the third part, present legislative situation of our country’s private loan risksupervision and its defects are mainly introduced. By analysing the present situation ofour country’s private loan risk supervision, this paper makes a conclusion that the mainreason which causes our country’s private loan risk is that our country’s risk supervisionsystem has problems, mainly reflected in the system’s imperfection on supervisor ofprivate loan risk supervision, market access and risk supervision after market access.The fourth part puts forward corresponding legal countermeasures on the basis of thesystem defects which are concluded from the third part. This part is the key of this paper. Firstly, we should set up multi-level supervisor system of private loan risk supervision.Secondly, improve market access system of private loan by limiting the scope of theprivate loan subjects, supervising fund sources of private loan and limiting the regionalrange of private loan. Finally, improve the system of risk supervision after market accessby regulating private loan contracts, strengthening the supervision of related transactionsand liquidity risk and so on in order to promote the sustainable development of privateloan.