On The Legal Regulation Of Private Lending

Private lending as an ancient way of financing, as early as in the slave societyhas emerged, has been4000years of history, the heyday of the Tang and Song privatelending. Since the reform and opening up, the private lending from the formalfinancial institutions can not receive financial support for the development of smalland medium-sized enterprises, SMEs to spend money difficulties, but also to promotethe development of the domestic economy market. But with the new changes in theeconomic situation in recent years, the national macro-policy adjustment and theimpact of the global economic downturn, the development of China’s private lendingis also caught in a dilemma. With the Wenzhou boss on foot frequent events, theannouncement of the outcome of the trial of the case of Wu Ying, the CPC CentralCommittee and State Council on the private lending emphasis continued to increase,from the past laissez-faire attitude change on private lending for private lending andprivate economic crisis great importance to the development of. In2010, the People’sBank of China statistics, the country’s private lending funds has reached2.4trillionRMB, the capital stock of private lending has reached immeasurable trend. Moreover,in recent years, the stock of private lending funds continued to show a growing trend,the annual growth of more than28%. According to the2011"Wenzhou privatelending market report, in the city of Wenzhou, the60%of90%of the number ofordinary people and local enterprises in Wenzhou are involved in private lendingmarket, not only participate in a wide range, and the private lending market interest rateslevel of interest rates as high as24%. As a result, leading to the expansion of theprivate lending market confusion and risk the economic disputes brought by privatelending escalating. According to the Wenzhou local court cases statistical data, thenumber of private lending disputes showing growth. The reason, first of China’sprivate lending regulatory legislation lags behind, followed by private lending is noclear legislative positioning, there is no specific supervision and guidance of measureson the private lending market, leading to the private lending market and the high levelof interest rates, the proliferation of speculative behavior the risk is difficult to remedy,in some places and even dun violence, gambling and other illegal activities. Therefore,the study of private lending, private lending, legal regulation, the long-termdevelopment of the lending market, the development and improvement of China’smarket economy, have a certain era and practical significance.The paper is divided into four parts, The first chapter of private lending overview,first defined the legal meaning of the private lending, followed mainly analyzes thedifference between private lending and illegal fund-raising, usury; Finally, the mainelements of the private lending, characteristics and reasons for the prevalence ofprivate lending. The second chapter focuses on the current situation and the mainproblems of private lending. First of all civil analyzed the current situation, the necessary analysis from the current development of private lending and legislativesituation, Second, a comprehensive summary of the main problems of the privatelending through this part of the analysis, hoping to find a favorable draw for the legalregulation of private lending. The third part analyzes the extraterritorial privatelending Overview and Reference, By the United States, Japan, India, Taiwan, China,Hong Kong, China and other private financial regulation mode, summed up the theprivate lending legal system available for our reference. The fifth part is the centralpart of the paper, The second part of the problem as well as the third part of the drawin order to find the specific measures for regulation of private lending. This section isfrom two private lending regulation, Improve our financial system of legal norms andperfect the system of government regulation of private lending, China’s privatelending standardized management, building conducive to China’s development ofprivate lending system.