Criminal Regulation Of Private Lending

As a kind of social economic phenomenon, the private lending long-standing andplays an important role in the social economic development and people’s daily life.Discussions on the private lending theory has never ceased, Wu Ying case again takepeople to think about many legal problems on the private lending, even the Wu Yingcase finalized, discussions about the private lending also did not stop.This article fromthe criminal point of view of the regulatory system of private lending to illustrate thenecessity of criminal law involved in private lending, how reasonable limitationsCriminal private lending limits and private lending charges made against thesentencing of these issues.The overall view of the article is to adhere to the principle of restraining criminallaw, to avoid the Criminal Law excessive interference in private lending, privatelending also a relatively free space. The article is divided into the following threeparts.The first chapter discusses the concept and characteristics of private lending,private lending course of development, the reason for the existence and developmentof private lending pros and cons.Private lending is relative to the official financialborrowings, not through financial institutions, the funds lending practices betweencitizens and between citizens of countries outside the financial regulatory system,citizens and non-financial institutions, legal persons and other organizations.Non-regulatory, funding sources, and to participate in the main body of the non-governmental nature of private lending with lending activities of these threecharacteristics. Time the critical point, the course of development of China’s privatelending can be divided into two stages before the founding of New China and thefounding of new China since the founding of New China. The emergence anddevelopment of private lending external reasons, such as the impact of small-scalepeasant economy development model, formal financial institutions, there arelimitations on the mode of operation and management system; also has its ownreasons, such as private lending itself to formal financial borrowing can not becompared fast, user-friendly advantages. The development of private lending hasadvantages and disadvantages: If it can improve the utilization of idle funds; alleviatethe urgent needs of SME funding; creating a competitive relationship with the formalfinancial promote the reform of the financial system and financial innovation. But atthe same time private lending can also cause distortion of the related financial data,the impact of the national macro-control ability to play negative impact. This paperargues that the benefits to be greater than its adverse effects.The second chapter focuses on the current situation and existing problems ofcriminal regulation of private lending. Growing private lending has produced somenegative impact on China’s economic and social development, China’s criminal law inenhanced the status of other laws and regulations of the Law on the Protection of theprohibitions in the field of criminal law on private lending regulation is necessary.China’s criminal regulation of private lending is a concrete manifestation of the statusquo two aspects. First, the private lending to incriminate low threshold the privatelending Pan penalty: often illegal absorb public funds based on the protection of thefinancial order, the crime, financial fraud, illegal business operations to evaluatelending activities. Treatment of private lending involving crimes cases, the identity ofthe people is low. The emergence of both the status quo mainly because of the legalsystem of private lending not keep up with the economic development, the relevantprovisions are scattered and lack of uniformity in the legal documents for each orderbit is that the maintenance of the financial order, the primary purpose of regulatoryintervention, regulatory the subject is not clear, the judiciary has become the main force of regulation caused. Can be found through the analysis of the relevantprovisions of the Penal Code and accessory criminal private lending there are someproblems, China’s criminal regulation of private lending: incriminate ideas onfocusing on the protection of the financial order, respect for and protection of lazyborrowing freedom of citizens; reached the purpose of maintaining the stability of thefinancial order, on charges of of regulating indirectly, financing to regulate directfinancing behavior; economic crime fund-raising fraud sin, in our implementation"with caution and strict control of the death penalty" of criminal policy, to graduallyreduce the death penalty charges Penal Code legislative trends, still retains the deathpenalty, the penalty emphasis. In addition, the existing criminal law for the regulationof private lending activities of illegal deposits from the public crime, financial fraud,unauthorized issue of stocks, bonds crimes, fraud issue stocks, bonds of sin and crimeof illegal business, these crimes from the criminal standard and legal punishment thedesign is not balanced.The third chapter is mainly directed against the recommendations of criminalregulation of private lending. Perfect for the problems previously discussed China’scriminal regulation of private lending, through the following three aspects. Firstestablished in the field of criminal law to protect the financial order and respect forthe freedom of citizens borrowing both legislative ideas. Citizens borrowing the samebehavior is normal investment behavior to be recognized by law, the criminal law cannot blindly pursue the stability of the financial order, while ignoring citizens’legitimate debt investments and free. To find a balance between the two, the balanceof the law, but points to either end of the tilt is the Criminal limits of private lending.The second is through the correct definition of illegal absorb public deposits sin andfund raising to defraud incriminating elements in order to achieve the purpose of thecriminal law involved in the field of private lending strictly limited. The third is tolimit the amount of private lending penalties for the crime in question by reasonable gradient the private lending charges made against the sentencing and the abolition ofthe death penalty for financial fraud.