On The Perfection Of Private Lending Regulatory System

In recent years, the informal lending is active in our country, it has played animportant role in solving the financing difficulties of small and medium-sizedenterprises and expanding public investment channels. However, for a long time inour country there has been no legal system of informal lending and lack of a perfectlegal supervision system for informal lending, which increased the risk of China’sinformal lending crisis directly and became one of reasons of the crisis of credit ofinformal lending in2011-2012. There are many causes in informal lending problems,this paper chooses the supervision of informal lending as the point. Starting from thebasic theory of related, this paper puts forward the necessity of informal lendingsupervision, analysis the problems and causes in the supervision, draws someinspiration by summarizing Wenzhou and Erdos’s measures in exploring informallending’s standardization, and finally puts forward relevant suggestions to perfect theinformal lending supervision system.This article is divided into four parts, the detailed content of each part arearranged as following:Part one: An overview of the informal lending. In this part we firstly define theconcept of informal lending, compare it with usury and illegal fund-raising, analyzethe positive effects and the negative effects of informal lending, summarize thecurrent development of informal lending in our country, and put forward the necessityof informal lending supervision at last.Part two: Analysis in the problems and its causes of China’s informal lendingsupervision. At present, the problems of China’s informal lending supervision mainlyinclude loss of supervision law, absence of supervision agencies and missing ofsupervision content. These problems on the one hand are due to our country’slong-term strict regulation of informal lending, which is result from deviation aboutsupervision concept, there is no effective arrangements for the informal finance, onthe other hand, these problems are also directly related with the formation of financialmonopoly in our country.Part three: Domestic experiences in dealing with informal lending supervisionproblems and its enlightenments. This part selects Wenzhou and Erdos asrepresentatives, summarizes their measures in the process of exploring informallending’s standardization and then appraises these measures respectively, finallycomes up with the enlightenments from the two cities’ experiences. Part four: Suggestions for the informal lending supervision system. Accordingto the reasons on the informal lending supervision problems in China, on the one hand,we need the deregulation on informal lending and have to provide a reasonablesupport system for it, on the other hand, we need to strengthen supervision, toestablish comprehensive supervision mechanism. In terms of system, it is needed toestablish a multi-level informal lending legal system; In terms of mechanismconstruction, it is needed to give clear arrangements in the supervision agency andsupervision content about informal lending.