Study On The Folk Lending Capital Present Situation And Development Model Of Wenzhou

In China, the private lending activities of civil society has been very active in the issue ofprivate lending has gradually developed into a popular financial problems even society as awhole. To some extent, private lending to our socio-economic development has played acatalytic role, largely made up for the lack of formal financial place. Especially inWenzhou, the development of many SMEs rely on private capital to a large extent.However, in our country a long period of time taken for private loans are strictlysuppression policy. Under such circumstances, not only can not make private lendingshould play an active role, also makes private lending swim in the gray area.2009outbreakof foot around the Wenzhou SME bosses event triggered most of the people involved inprivate lending in Wenzhou nowhere to beg for borrowing money and even lead to ruin anddeath. According to the market survey, the number of private lending in Wenzhou containsbut a huge amount of capital investment and no good way out. To how to solve theproblem of private lending in Wenzhou, how to establish a management oversightmechanisms, which need to be addressed.The main entry point of this paper is the case of private lending in Wenzhou region. Thispaper first describes the concept of private lending, and analyzes the past lives of Wenzhouprivate lending; then, this article from economics, sociology paper analyzes the reasonsfor the development of private lending in Wenzhou region generated to study the futuredevelopment of the region may problems encountered; at last, the paper evaluated thecurrent situation of Wenzhou private lending market, depicting the blueprint for the futuredevelopment of the region. Wenzhou region first study sample, the research results canthen be applied to other areas of the region. This paper argues that the state should speedup legislation, regulate private lending market behavior, government and financial management of the Ministry of the financial sector should effectively carry out supervisoryduties, and improve the investment environment, the establishment of specialized agencies,regulators, and guide private lending, private capital making healthy, positivedevelopment.