Study On The Legal Regulation Of China’s Private Lending

All non-credit activities outside the formal financial institutions are all carried out privatelending. But between ordinary individuals are not borrowing behavior of private lending.According to different standards bodies of private lending, interest rates and law characteristicinterval can be different classification. Supply and demand of capital is the root cause of theexistence of private lending, because in addition, differences in cultural traditions andregional economic development, but also its social produced. Private lending has value andfair value of efficiency, it is there should be affirmed. Meanwhile, the private lending willproduce many negative effects of damage to corporate interests and hinder economicdevelopment. Therefore, it is necessary to carry out legal regulation of private lending, whichcan prevent private lending to non-standardize direction, can also maintain social order,regulation lending risk. Legal regulation of foreign private lending measures can be roughlydivided into market-led, government-led and mixed three modes; the United States, Japan andChina’s Hong Kong are typical of these three modes.For the legal regulation of private lending has experienced an absolute prohibition,acquiesced loose, strict control, and limit and guide both four stages of development. Atpresent, in the civil, criminal and administrative law, there are laws regulating private lending.However, the legislative regulation of private lending dispersed, and there is no specificlegislation, more than a point of conflict between the existing law, and private lending andother financial behavior often ill-defined. In addition, there are some problems of regulationof private lending. To improve the legal regulation of private lending, we must first improverelevant legal system in China, specialized in the development of the legal basis, to eliminatelegislative conflict, to clarify the concept of private lending and other boundaries, andestablish reasonable for private lending, effective regulatory system. To cope with theestablishment of a sound legal system, the need to improve the relevant supporting measures.These measures include the construction of information-sharing platform, a system ofinvestigating criminal usury; improve the social credit system and the establishment of privatelending registration system.