Research Status And Path Of China’s Development Of Private Lending

With the rapid development of economy and society, our country folk gradually accumulated large amounts of private capital, private lending, which providing a large number of credit funds for small and medium-sized enterprises and residents in outside the fonnal financial and promoting the rapid development of economy, has become increasingly active. But borrowing in China has been in a state of anomie, free from outside the fonnal financial, caused a certain security risks to social stability. Especially in recent years, frequency capital chain rupture phenomenon caused by private lending has occurced, how to solve the negative effects of folk loan is the urgent problems at present in china.On the basis of financial repression theory and financial deepening theory,this paper carries on systematic analysis to private lending, thinking that the various problems faced by private lending are caused by excessive government intervention. The key to solve these problems is financial deepening. Combined with the current development of private lending, this paper argues that financial suppression, absence of legislation and lack of supervision are main problems that restrict the development of private lending. To regulate the operation of private lending,the government must relax borrowing constraints, magnify the complementary role of private lending to the fonnal finance, perfecte legislation, strengthe supervision, at the same time of promoting private lending to the fonnal financial, promote the formation of multi-level borrowing system.In the overall structure, firstly, the introduction part making an introduction of the overall framework, the research methods and literature review, is a general summary; secondly, on the base of defining the private lending, the paper analyzes the current development status of China’s private lending, and through specific case analysis, finds that the lack of legislation and the lack of supervision are main problems of restricting the development of private lending; thirdly, this paper collects and sorts out the private lending measures in other countries and regions, through experience summary,finds that all of these countries and regions have legislation and supervision of private lending, under the guidance of the legal policy, the private lending is or for the formal finance, or become an official private lending institutions, private lending has freedom and fair competition platfonn. finally, through the comparative analysis of measures of private lending in China and other countries and regions, this paper puts forward the policy and suggestion for the development of private lending:perfecting legislation, constructe multi-level and comprehensive monitoring system, guide the development direction of private lending, brighting the grey finance.According to the current development of China’s private lending, this article puts forward some measures to regulate the governance of private lending. These measures should be verified in the concrete implementation process, and continuous exploration and improvement is needed in practice.