Research On The Legal Issues Of The Non-governmental Network Lending In China

Non-governmental network lending is a business model which offers unsecured loan through the Internet. It arises at the historic moment when the development of Internet becomes mature, and has been widely expanded since the past decade. Non-governmental network lending originated from microfinance and provides credit information and services to both borrowers and lenders through the network platform to let the two parties reach loan agreements. Different from the traditional lending financial model, the non-governmental network lending platform prodives faster and more efficient lending intermediary services for both borrowers and lenders. The non-governmental network lending model actives the credit market in our country and eases the perdicament of the difficulty of small and medium-sized enterprises and personal loans to some extent. However, there are still a lot of risks in this convenient financing mode. So far, our country has not introduced laws and regulations on non-governmental network lending, neither ascertain a relevant regulatory agencies. Legislative and regulatory gaps greatly increased the operational risks of non-governmental network lending. Besides, issues like vulnerable individual credit system and own risks control system of the net work platform have restricted the healthy development of lending network platform. There is strong need for the legalization of non-governmental network lending and at the same time related departments especially the financial regulators should put the non-governmental network lending platform into its regulatory scope in order to reduce risk and promote the business develop healthily.This article consist of five chapters, the main content is as follows:Chapter one is gives a general introduction to the development status of non-governmental network lending, and puts forward some existing problems, then descript the necessity for its regulation.Chapter two is the basic overview of non-governmental network lending platform which can be divided into three parts. The first part introduces the rise of the non-governmental network lending and the main modes of domestic lending network platform. The second part analyzes the main reasons of the rise of non-governmental network lending. The third part elaborated the legal status and the properties of the non-governmental network lending in our country.Chapter three introduces legal issues existing in the operation process of the non-governmental network lending in our country and is devided into three parts. The first part analyses the legal issues in network lending form the perspective of the lenders, mainly focuses on the lack of clear legal position for private lenders, the lack of accurate lending interest rate and the risk of money laundering in the network mode. The second part analyses the legal issues in network lending from the perspective of borrowers, mainly focuses on the difficulty to determine the reliability of the borrower’s information, the borrower’s personal information protection, as well as the large risk of bad debts in network lending. The third part analyses the legal issues involved in network lending from the perspective of the network platform, mainly focuses on the risk of illegal fund raising, the lack of restrictions on the network borrowing purposes, as well as the lack of supervision of network lending platform.Chapter four is the suggestions on legal system perfection of non-govemental network lending. There are three parts, the first part ascertains the nature of non-govemental network lending and points out the necessarity to clarify and standardize the rights and obligations of the network lenders, as well as identity the lending network platform. The second part ameliorates the information evaluation mechanism of network lending platform by inproving both personal credit system and the webside’s credit system. The third part expounds improvement of lending network platform regulation, mainly about establishing financial regulatory agencies and regulatory standards.Chapter five is conclusion, summarized this article and the system which the author raised.