Research On Legal Regulation Of Private Lending Interest Rate In China

Since the reform and opening up, economic has developed quickly.The society has accumulated a lot of capital. Private lending has become increasingly active and become an important form of private financing to the development of small and medium private enterprises to provide financial support and become a useful supplement to formal finance. However, our current laws lagged behind the development of private finance and don’t define the legal status of private lending clearly. The lack of effective supervision, management and protection mechanisms, resulting in private lending. Although there are a lot in real life, but there are also high-risk hazards easily, into the area prohibited by law. In the private lending activities, the key factor in lending balances Stakeholder trading game is the interest rate, the interest rate level determines the extent of the protection of private lending. Private lending interest rates and the study of legal issues have important practical significance. July 20, 2013,The People’s Bank of China full liberalization of formal financial insitution on lending rate controls, interest rate reform has taken a key step. In this context, the control of private lending interest rate “quadruple ceiling” exists whether also has become a hot academic explore rationality. This article doesn’t deny that the private lending market interest rates are inevitable trend, but in the financial legal system of our country, the private lending interest rate controls what will inevitably lead to full liberalization of various risks, fully implemented in the interest rate market before a good legal environment formation of private finance. Private lending interest rates for the appropriate regulation is still necessary.This paper consists of four parts, the main contents are as follows:Part I is the explanation of basic theories of private lending interest rate regulation, by the connotation of private lending expanded, focusing on the factors affecting private lending interest rates. And show my point in the interest rate liberalization and regulatory debate, considered appropriate regulation and market reform private lending interest rates are not antagonistic conflict, private lending interest rate market is“managed interest rate market”.Part II analysis the comment of the legal system of private lending interest rates. To classify sort of the law on private lending rates, focuses on the unreasonableness of the law “quadruple interest rate ”restriction. Examine the various sectors of civil borrowing rate regulation system in the presence of macroscopic role unclear issues.Part III select three typical foreign private lending regulation mode to inspect analysis. Summarizes the trends and experience of private lending interest rate regulation, that the nations of the regulation of private lending interest rates will continue to be adjusted with the economic development, accompanied by the gradual liberalization trend.Part IV consider China’s actual situation and the basis of the analysis of the previous article, puts forward suggestions to improve the legal regulation of private lending interest rates. The law should be developed specifically to achieve the legality positioning of private lending, distinguish different consumer lending and productive lending rates and adopt different regulatory standards,clear legal responsibility on usury. Unify the referee standards of difficult legal issues about civil interest loans to ensure judicial impartiality and authority. To build a multi-level private lending interest rate risk management system to achieve precise role of each department. Finally from the construction of the system related aspects,expect the progressive realization of the private lending interest rate liberalization.