Research On The Private Lending Legal Issues

For a long time, the private lending market active in China’s private financing as ameans of financing a spontaneous largely to make up for the defects of the formal financialwhile expanding the areas of finance, an immeasurable contribution to the development ofChina’s economy. But current law for its lack of clear guidance and regulation, the SunDawu and Wu Ying case occurred so that we are aware of the guide private lending urgency,the civil usury problem so that we see the necessity of regulating private lending problems, soreasonable position of private lending, the legal regulation of private lending behavior privatelending, so out of the black areas is imperative, urgent. The legal definition and developmentstatus quo of this article from the private lending, both theoretical and practical point of view,the proposed countermeasures to solve the problem of the regulation of private lending.This paper is about three parts: the first part starting from the concept of private lending,private lending, the emergence of a variety of reasons, and the existing form of existence, andthe pros and cons of the impact of private lending for China’s financial markets. The secondpart of this paper focus on the behind the legal risks of private lending risk analysis of the WuYing case and the case of Sun Dawu, pointed out that the criminal legal ambiguitysurrounding the relationship between the private lending and financial crime interfere toomuch danger on the private lending market through the transformation of the current trendsand the nature of the civil usury analysis, pointed out that the the civil usury reality causes thedual structure of the financial monopoly market did not disappear, usury has positivesignificance, put forward the view into the criminal usury should. The third part, pointed outthat our current laws legislative chaos and fragmentation, interest rates are too rigidrequirements, supporting system is imperfect, and other defects, many private lending wrongwith the private lending divorced from legal and illegal reasons, so improve the existing laws,including the introduction of uniform rules of private lending, the protection of the legalstatus of private lending body; creation of private lending registration system, the implementation of the credibility of the lending practices; relax the laws for the control ofprivate lending rates, the interest rate decision in market; take full advantage of the privatefinancial institutions, the role of self-regulatory associations, self-supervision.Finally, the paper concludes: dual structure exists in the country’s financial marketcontext, not exerting pressure against the implementation of private lending policy, privatelending is a way out of the private capital, private lending is the choice of the market, privatelending was supposed to obtain legal laws. Legal regulation of private lending should also bebased on the correct guidance of the lending market, the right to protection, propersupervision, through special legislation to improve the private lending.