An Empirical Study On The Reconstruction Of The Control Standard Of Private Lending Interest Rate

Private lending is an important part of Chinese financial markets, which effectively promoting the development of our non-state-owned economy. And it is a positive and effective financing mechanism for Chinese economic growth. The private lending interest rate is a key factor of private lending. And it is also an important indicator of private lending system. Therefore rightly guiding private lending interest rate is crucial.However, as the private lending market growing so fast, the standard of interest rate controls limit is still "quadruple bank lending rates over the same period", which developed by the Supreme Court in1991. Now, this standard is questioned both in formulation and operation. In this paper, I choose the reconstruction of the standards of private lending interest rates as the main regulatory, and try to explore reasonable private lending interest rate controls.Specifically, the first part of this paper introduces the basic theory of private lending interest rate controlling. The part first discussed the basic meaning and importance of private lending rates, followed by the necessity of controlling interest rate from the value of freedom from legal, economic efficiency and social efficiency, and finally the path of controlling private lending interest rate. Besides this part further confirmed directly cap standard is the most appropriate path to our country.The second part is analyzing the factors influencing private lending rate. This part first reviews the theoretical impact of private lending interest rate and extracts nine theoretically factors affecting private lending interest rate which are the main borrowers, use, the length of the period, the urgency of the borrower, the amount, the interest rate of regular financial loans, the extent of regional economic development, as well as price index. On this basis, I extracted437samples from verdict to analyze empirically. Through a series of statistical analysis, I further confirmed the deviation of the active control standard. The third part is the reconstruction of the control standards of private lending interest rate. This part, which based on the empirical analysis, proposed setting a nationwide standard is more reasonable. In this context, I demonstrate the reason of choosing new standards limit in detail. After combining the average rate and Pareto theorem, I proposed40%as the appropriate limit standard.The fourth part is the conclusion. This section summarizes the main ideas and problems of the research, and proposes that the use of quantitative methods to the study of law is an attempt. Hope that my research can do a little favor for the regulation of private lending rates.