Research On The Legal Regulation Of Private Lending In Our Country

As a convenient and flexible means of direct financing，private lending played animportant role in the make up for the lack of formal financial institutions to ease thecontradiction between supply and demand of funds, which greatly promoted thedevelopment of Chinese private economy, it has no doubt that the reasonableness andnecessity of its existence. However, compared with the formal financial, the privatelending is funds supply and demand both sides of the spontaneous behavior, itsinadequate supervision, together with the relevant laws and regulations were not wellorganized, along with the further expansion of the scale of private lending, the socialdisputes show a growing trend, such as usury, illegal fundraising, a series of problemsgive rise to a growing risk of private lending. Guard against and defuse the factors ofdisharmony in the development of private lending process to reduce the risk of privatelending has become the important issues that need to be addressed in the path ofdevelopment of private lending.This paper first describes the private lending several major titles, define the meaningof private lending from the two aspects of the subject and object, take private lendingdivided into organized form and unorganized form and that the development of privatelending organizations become the trend of the private lending market, at the same timespell out its civil legal nature of a contractual relationship. Then through a comparativestudy of the legal regulation of private lending by other major countries and regions ofthe world, and look at the history, current situation and the reasons of Chinese privatelending in order to assimilate reasonable ingredients. On this basis, puting forward thespecific measures of legal regulations, which should adhere to the mode of"protection+regulatory" and follow party autonomy and national moderate interventionprinciple. In order to create a favorable legal environment for the development of private lending, which could play its comparative advantage to provide strong financial supportfor the development of the private economy on the one hand, but we also need tostrengthen the supervision to guard against the possible risks and maintain the securityand stability of the financial markets. The ultimate goal is to give full play to the privatelending’s value in the running of the economy, build a multi-level credit market system tomeet the needs of investment and financing by different subjects.