Research On Legislation Of Private Lending

The non-governmental credit loans as a focus question in China has beenattached more importance. Crisis has happened in Zhejiang, Jiangsu, Xiamen, Erdos,etc. One of bosses of private enterprises took all the money and ran away. The usurymarket crashed. The capital chain fractured in guarantee industry. A series of majorevents in non-governmental credit loans made it lie the hazard and in chaos. It istime to regulate the financing area. In2012, the case of Wu Ying has evokedattention recently on the issue of non-governmental credit loans among scholars. Asa major mode of financing, the non-governmental credit loans have been existed fora long time. Great changes have taken place since the reform and opening policy, anincreasing number of private corporations have grown in strength, and occurs withthat non-governmental credit loans become relatively widespread to its advantage ofsimple, low cost, effective and the low threshold. With all these advantages, thenon-governmental credit loans gain acceptance from insistent pursuance by privatecorporations and miniature enterprises. As a result, it solves the problem ofdifficulties in financing and accelerates the development of economy to a certainextent; also it provides a practical way for our financial innovation. However,potential safety hazard exists in the non-governmental credit loans. The root of theproblem is that legislation lags behind times. Accordingly, in this paper, we focusedon the legislation of non-governmental credit loans from the views of necessity,feasibility, and specific content, and make our suggestions on the key issues.This article consists of four parts. The first chapter is an introduction of theresearch background, the general trend of history and future outlook ofnon-governmental credit loans. The second chapter is the exploration the necessityand feasibility of the non-governmental credit loans from the views of thedevelopment in theory, policy support and institutional basis. The third chapter is ananalysis of the intents and principles of legislation. The intents including upholdingthe clients’ rights under the law, guarding against and solving financial ventureeffectively, opening the way to economic development and improving environmentallegislation in finance. The principles mainly include good faith, equality, andvoluntariness, concerned about both safety and efficiency. The forth chapter is aboutlegislative content. First, legislate should to supplement to the current financialservices regulatory structure. Second, criminal offenses in financial sphere on thenon-governmental credit loans shall be defined. Finally, we propose the assumption and expectation the future work of laws represented such as Lenders Regulation,which should include all speculations of a rightful place, the market admittance andretreating system, financial resources, interest rates and financial regulation. In thisway, the legal system of non-governmental credit loans in finance can be perfectedby taking some effective measures to improve the present situation that thenon-governmental credit loans lies the hazard.