A Study On Rules Of Informal Credit

Informal credit played a significant role in supplementing the insufficient supplyof formal financial and promoting economic development. But there are a series ofnegative effects. Trivializes situated and mutual conflicts exist in our Chinese legalregulation. Strict interest rate and the range of lenders control not only suppress thedevelopment of informal credit, on the contrary, it become even fiercer. The risingscale of private capital and the "run" of Wenzhou highlight the informal credit havelegal risk and social risk. In order to standardize the development of the privatelending, we should rethink the legal system of our country’s informal lending.Strengthen the coordination and unity, at the same time; build reasonable supervisionmechanism and supporting system.Both domestic and foreign country’s legal system haven’t made a precisedefinition of informal credit, I think the informal credit is refers to those out of thesupervision of official financial institutions，that borrowing money between naturalpersons, legal persons and other economic organizations. Distinguish between civilprivate lending and commercial private lending can effectively influence thecommercial private lending on regulation. Analysis the relevant provisions of subjectqualification of informal credit and the highest interest rate set by differenteconomies,I thinks that under the think of China’s current national conditions andpolicy background of the financial system reform, to allow a natural person to makeprofessional lending business and let go of part of the money lending betweenenterprises is the trend of the times. Clean the related laws and regulations of informalcredit carry out the act of informal credit, perfect regulation of supervision system andbuild the corresponding supporting system, common for informal credit’sstandardization.