Improvement Of Regulatory System Of Private Lending Interest Rate

Private lending has a long history in China, which has played an activerole in solving the shortage of funds among people and meeting thedevelopment of SMEs. Because of the traditional moral values and thenational policy, private lending has been in strict control of state, andthe usury has always been objected by people. In recent years, with thereform of the financial system, the interest rate of private lendingmarket is paid more attention. A large number of experts and scholarsadvocate that we should hold an objective attitude towards usury, moreand more people advocate that we should legalize the private lending andrelease the regulation of interest rate. In2012, the discussion ofprivate lending was brought to an unprecedented height by”WuYing case”.It’s urgent to realize the rational treatment of usury and improve theregulatory system of private leading interest rate.The article will be divided into four sections. First, introduce theprivate lending. Analyze the history of the development of private lendingmarket, based on the introduction of its concepts, classifications,causes and feathers. Discuss the necessity of interest rate regulation, the history and current situation of Chinese private lending interest rateregulatory system, and lead the discuss on usury. Second, advocate thatwe should have a comprehensive and accurate understanding of the usuryin the private lending market. We should abandon the one-sided moralevaluation of usury, face up to the objectivity of it. In the legalregulation, we should reform the traditional standards, oppose theincrimination treatment about usury. We must hold an objective attitudetowards usury so that we could solve it. Third, there are many countriesand regions with a high level development of financial market. Plentyof experience was accumulated in the supervision of usury. It’s very goodfor us to learn from them. We will sum up some effective measures basedon the comprehensive analysis of the USA, Germany, Japan and Taiwan.Finally,we will put forward two suggestions to improve the regulatorysystem of private lending interest rate. First, we should formulate andimprove relevant laws, in order to realize a comprehensive supervisionon private lending. Second, we should strengthen the credit system, sothat we can create a faithful and well-managed private lending market.At present, it is very important to get a stable development of thefinancial market, so that we can realize a stable development of oureconomy. The orderly operation of the private lending market has playedan inevitable role in maintaining the development of the financial market.So, it is very meaningful to adopt some objective treatments and createa exhaustive regulatory system of private lending.