Research On Legal Issues Related To Private Credit

Private credit has described a long history in China, it has been an important role inprivate financing in a long development stage which had peak and downturn. Privatecredit is like a double-edged sword. On the one hand, private credit was outside theofficial banking system and legal regulations for long time, it wasn’t got the official’sattention, private credit has spontaneity, it lacks of external constraints and other factorsin the event of funding strand breaks, this point would tend to trigger a chain of adversereactions, it harm social stability seriously, and make great risk. But on the other hand,private credit is indeed China’s economic development, especially for small and mediumenterprises and private enterprises growth and development, Therefore, we mustunderstand the nature double-edged of private credit, Used legal form to stipulate itsposition in the financial system, which is conducive to the development of guidance andsocial, and eliminate the negative impact, then to promoting the steady development ofChina’s economy.The article from the government to tighten fiscal policy, small and medium-sizedenterprise’s economic malaise, From the connotation of the private credit, trends and theutility analysis, combining with the current our country related laws and regulations onprivate credit, to solve the problem of private credit in our country, realize the privatecredit long-term development.This article from private credit forms meaning, Processing and commercial legalrelations. Theoretical research on the innovative about private credit behavior problem.Advice to perfect our legal system for private credit. Specify the main body of privatecredit, the standard private credit interest rates and setting up reasonable interest rate cap,solve private credit incomplete laws, perfect private credit rules, develop the maximumutility in private credit.