On Legal Regulation Of Private Lending

Private lending is a form of folk finance,every countries have, and werewidely recognized. It broke the bank financial monopoly, domain and rangebeyond one’s strength one’s power in the formal financial institutions toShiyibuque effects. On the one hand, the formalities convenient, flexible form,characteristics of risk return symmetrical strongly supports the economicinvestment, small and medium-sized enterprises, adapt to the market demandof financing, on the other hand, with the flow of funds is becoming morefrequent, the increasing size, originally considered the few legal dispute folklending, malignant cases in recent years the incidence of in the boom, has aserious impact on the region’s financial order and social stability. The Stateencourages the private capital into the financial field, should also be timely todevelop, improve the law adjustment borrowing and other related systems. Inthis situation, the formation of private credit basis, advantages anddisadvantages of reason analysis, legal environment, the survival of theexternal field are discussed, we should establish a folk lending regulations "--folk financing method", modified and folk lending the existing laws,regulations, should be appropriate to relax the financial control the "--Folkfinancing method ", modified and borrowing the current related laws andregulations, should be appropriate to relax the financial control, the establishment of private lending regulatory, service, coordination mechanism,and improve the legal system of private lending.