Research On Legal Regulation Of Underground Banking

Underground banking has a long history in our country. Up to now, there are two different types of underground banking, one type is the underground banking of debit and credit whose main business is loan, the other type is the underground banking of remittance whose main business is illegal remittance and money-laundering. On the one hand, the first type of underground banking has been limited by policies and laws due to many reasons. It has not disappeared, but develops more rapidly with the high suppression of the government. It is springing up in the economically developed coastal provinces in recent years especially. At the same time, the public image of it has changed a lot in recent years for it plays a positive role in the small and medium-sized enterprise financing. The public image of it is no longer merely the pronoun of "illegal raising funds", "illegal absorbing public deposits ", "usury" and other illegal and criminal behavior. It raises questions and challenges to the current legal regulating of the underground banking of debit and credit. Consequently, academic circle argues that the underground banking of debit and credit should be legitimized. Especially under the background of the current financial woes and aggressive folk financial reform, the kind of voice is heard. In the government work report this year, Premier Li Keqiang said,“We will encourage qualified private investors to establish, in accordance with the law, small and medium-sized banks and other financial institutions”. It also provides a realistic possibility for the underground banking of debit and credit enter into financial market aboveboard and justifiably. On the other hand, although legal regulation of the underground banking of remittance has made great progress, it still need to be improved a lot.In this context, after combing the current laws and regulations of underground banking, a series of problems have been found in the current legal regulation system of underground banking. Through combining China’s national conditions and the experience of outside, the paper puts forward the corresponding countermeasures, which makes contributions to regulating it more scientific, inhibiting its negative influence and guaranteeing it plays a positive role.The paper is divided into four parts except preface and epilogue.The first part is an overview of China’s underground banking. In this part, it expounds underground banking from its historical origin, definition, classification, forming reasons, the significance of improving the law system of the underground banking and other aspects.The second part is about the current situation and existing problems in the legal regulation system of underground banking. Based on analyzing of the name and main content of laws and regulations that regulates the underground banking specifically, it analyzes the problems in the current relevant laws and regulations, including the legal regulation of the underground banking of debit and credit needed to be reconstructed and legal regulation of the underground banking of remittance needed to be perfected.The third part is the investigation and reference of the successful experience of countries and regions outside. In this section, it introduces the current situation of legal regulation for underground banking in Japan, Taiwan, Hong Kong and America. On this basis, it summarizes the experience which is worth our reference.The fourth part is the research on perfecting the legal regulation of underground banking in China. According to the problems, national conditions and foreign experience, it puts forward the legal regulation suggestions, including reconstructing the legal regulation of the underground banking of debit and credit and perfecting the legal regulation of the underground banking of remittance.