On The Improvement Of Legal Regulation Of Private Lending Interest Rate

Private Lending Interest Rates always reflect supply and demand, in order to avoid economic turmoil legislators enact statute to regulate private lending interest rates. Similarly, for the suppression of the early 1990 s, "financial turmoil", the government established "four times the red line" to regulate private lending interest rate. It is a way that the government power intervened private financial market, the legislative measures took benefit for the financial order and stability of the financial system. Admittedly, private lending as a simple and convenient way to solve personal finance, funding needs of SMEs has played an efficient role. Unfortunately, with the rapid development of China’s economy, the legal regulation system of interest rates four times gradually reveals many defects, which at the legislative level and the judicial level both have drawbacks, indicating that “one size fits all” system is not able to adapt to current market-oriented economy.Therefore, how to improve regulation of private lending interest rates, how to develop a reasonable interest rate and how to strengthen the effective supervision of private lending interest rates and other issues has become an important issue of private lending legislation needed to solve, and interpret our laws on private lending rates there are many disputes and disagreements need to clarify. So I think that the topic has a strong practical significance and theoretical significance, which can guide and regulate the private lending behavior and reduce lending dispute cases, and the topics for further study at the legislative level, whether or judicial practice is very necessary.Except the introduction and conclusion of this article, the article is divided into four parts to start on.The first part, private lending interest rate controls the basic theory and the status quo. First, the definition of borrowing folk connotation in the larger academic controversy, and often with the "underground banking" confused. This paper defines the connotation of private lending, said the main broad and narrow sense two mainstream perspectives for analysis. In the definition of the basic concepts of private lending, based on in-depth analysis focuses on the basic concepts of private lending interest rates and the main features of research results is no uniform standard interest rate, which has also been lending period, supply and demand, lending rates, the use of funds, borrowing objects affected. In addition, from the legislative point of view, to be an analysis of the current interest rate controls legal regulation, inquiry, although China has made a certain degree of control over lending rates, but the legislative system is still scattered in various provisions of the different branches of law, the development of different body effectiveness of different rank, the lack of a unified special legislation, gradually revealed many shortcomings.The second part analyzes the shortcomings and the reasons for the current private lending interest rate controls. On the basis of freedom, equity, efficiency, order and basic values of our current shortcomings of private lending interest rate controls on legal considerations to make. Secondly, due to the loose nature of existing legislation, in judicial practice, the differences in interest rates on the legislative interpretation of the defendant to appear in court is difficult, difficult to examine the evidence, fact finding an effective solution to difficult issues are a serious impediment to private lending contract disputes. My analysis that generates a lot of reasons for the shortcomings of legal norms are not uniform, the provisions of the serious lag, between the legal provisions of the law conflict. Thus, it has been a serious social and economic life of the existing laws and regulations are not suited to the urgent need to improve the focus of legislators, so the timing of such a long borrowing rate laws should quit the stage of history of the law.The third part of the study of comparative law extraterritorial private lending legislation. Throughout the countries of legislative measures private lending rates can be roughly divided into three typical legislative modes: standard interest rate cap established beforehand, and afterwards to play the judge discretion to identify the nature of borrowing at floating rates and announce in advance the limit and make corrective mechanism afterwards. After a full analysis of the above advantages and disadvantages of various legislative measures, I think the adjustment of private lending activities through specific legislation; clear upper limit private lending rates by legislation; government with positive guidance, China, combined with an effective criminal regulation; on the judiciary by double standard comprehensive legislative objective and subjective revelation usury behavior finds great reference for our current legislation.The fourth part of the recommendations to improve civil legal regulation of lending rates. After plight through private lending rates faced by the analysis of existing legislation, the author of the characteristics of China’s judicial system put forward a sound legal regulation of private lending of three proposals from the legislative, judicial, law enforcement angles: one, the interest rate ceiling on the legislation establishing the system of classification system. Because of the unbalanced economic development in all regions, different lending practices of civil legal relationship is more complex, and therefore, China should take the people, criminal diversion mode at the legislative level to regulate private lending interest rates; two, to play judge justice initiative to protect the legitimate rights and interests of the parties. Private lending case complexity requires a judge’s own in-depth and comprehensive grasp of the facts of the case as well as for private lending interest rates all have a clear understanding of the laws and regulations in practice and therefore the judge should examine the contents of flexibility to expand the scope of the review within the terms of reference, demonstrate the principles of fairness and justice to both sides; three, to establish a government guide mechanism of private lending interest rates on law enforcement. In the law enforcement level, the need for government to play its role in protecting the rights of citizens and even actively pursuing legitimate interest demands of citizens, if the government does not establish an appropriate mechanism to guide private lending reasonable intervention, the ensuing financial issues behind it is more serious social problems.