The Dilemma And Solution Of The Financial Regulatory To The Private Lending

As an old mode of financing, private lending has been exsiting in China for a long time. The private lending is vigorous and can push the development of market economy for the characteristic of itself. Recently, the public’s eyes are focused on the private lending more frequently. In Wenzhou in Zhejiang Province and Jinjiang in Fujian Province, where the private lending existed earlier, the scale of private lending is larger than the formal financial agencies. Private lending can give financial support to private Small and Medium Enterprises (SMEs), which can’t get enough financial support from formal financial agencies. It can promote the development of private SMEs. But the regulatory to the private lending is still immature, so the research on the regulatory to the private lending has Far-reaching significance.The paper starts with the introduction of private lending. With the theory of Financial Repression, Interest Rate Decisions and Financial Monitoring, it interprets the existing state of affairs, characteristics, influence of the private lending in Fujian Province. By the contrast of the regulatory to the private lending in USA, Japan and Indian, the empiric of the regulatory to the private lending is generalized, and then the suggestions on improving the regulatory to the private lending are proposed.