Legal Regulation Of Private Lending

Private lending continues to exist in our country for a long time, with differentperiod of economic development needs and national policy guidance, the twists andturns of the constantly growing in the institutional environment. After the reform andopening up, along with the demand of China’s economic development, shortage ofservice of formal financial system gradually exposed, at the same time, privatelending should be the requirements of the times and gradually develop and grow andcontinue to cause the attention of various circles of society. However, in a long period,borrowing so as to make up for the lack of formal financial services, but has beensubject to legal pressing hard to grow up healthily in the sun. Based on an analysis ofthe causes of the formation of private lending and the social economic basis, affirmsthe rationality and value of folk loan exist, do the analysis on the current situation ofour country private lending legal regulation, and puts forward some superficialsuggestions for improvement, in order to legalization, the folk loan standardizationdevelopment the role of forward.The thesis contains four parts: the first part introduces the theory of privatelending in general, connotation, from folk loan extension and expounds theunderstanding of folk loan. At the same time, analysis of two aspects of internalfactors and external environment of private lending based on, the private lending inChina the legitimacy, and from two back to borrowing social economic benefitsevaluation.The second part, the author hackles the current our country private lending legalregulation, through the folk lending is legitimate or not, the main provisions limitprovisions and interest rate control, expounds the problems existing in the legalsystem, administrative management of China’s private lending, focuses on theanalysis of the unreasonable interest rate mechanism.The third part, another is good quality or suggestion where by one can remedy own defect, the author lists on private lending legal practice in some countries and regions,to the United States for folk lending regulation mode, Japanese guided form ofborrowing law, analyzed the Taiwan folk lending legitimacy on the capital allocationefficiency as the object, with a view to China Private lending legal system to providereference for selecting.The last part, corresponding countermeasures in order to improve the legalregulation of the folk lending in China were put forward, think to perfect the legalsystem of private lending, must establish the concept of the legal regulation of theright. From the improvement of legislation mode and the choice of path, the interestrate mechanism and the legal and illegal, angle, and puts forward theCountermeasures of legal system construction of borrowing, and put forward thecorresponding regulation.