On The Analysis And Control Of Folk Loan’s Legal Risk In China

Folk loan, some scholars have also called folk finance, naturally present in China’seconomic and social and personal lives of the citizens, but its position in the officialvision is not officially clear. Regardless of the official’s ignoring of its position in thefinancial system, the important role of folk loan for economic and social development isno doubt, as a form of investment and financing, folk loan market entities effectivelyalleviate the need for capital to make up the monopoly of China’s financial lack ofinstitutional supply. Especially in the case of the current economic of rapid development,the high degree of popularity of the Internet, folk loan has developed into an industry,and in the continued development and growth. Of course, in the spontaneous growthtrend of folk loan there are many problems and shortcomings, its harm to society alsoshould not be overlooked. Both academics and practitioners consider the long-termdevelopment of the industry, we all unanimously recognized the folk loan’s standardizeddevelopment proposition.How to achieve standardization development of folk loan, there is muchdebate.Exploring practical way to guard against legal risks of folk loan is an importantdirection to achieve the folk loan’s standardized development, attracted the attention ofscholars and practitioners. The current problems in the field of China’s folk loan, boilsdown to two main reasons: The first is the confusion and lack of legislative norms;second is the unclear status and lack of supervision. This article is also proceed fromthese two areas, trying to analyze where the risk of China’s folk loan lies and preventivestrategy for to achieve folk loan’s standardized, healthy and stable development. In thispaper, the main framework is as follows:Chapter one introduces the background and significance of the topics introduced,highlighting the topics of practical significance.The second chapter of the development of China’s folk loan problems, the conceptof folk loan discrimination, a clear connotation and extension of the private lending;brief introduction to the current development of China’s private lending market statusquo and existing problems of the private lending conducted a macro comprehensiveintroduction.Chapter of the legal risks of folk loan analysis, defined on the basis of analyzingthe status quo and problems of private lending in the second chapter, the legal risks of private lending, and defects of the existing laws and the lack of relevant legislation,borrowing participants of illegal loan practices cognitive, beyond the control of thesources and uses of funds, and related criminal boundaries blur, loan intermediaries fiveanalysis of the legal risks of folk loan sources.The forth chapter China’s folk loan controlling system of legal risk, after theanalysis of the the folk loan’s status quo, sources of legal risk, targeted policies andmeasures to guard against the legal risk of folk loan, including the improvement ofstandards of folk loan’s legislation, establishing reasonable regulatory system,strengthening the credit system, the establishment of industry self-regulatorymechanism and strengthening loan laws propaganda, raising public’s awareness of riskcontrolling.