Research On The Legal Regulation Of Folk Financing

Folk financing to the outside of the formal financial institutions, borrow based financing activities in the capital, there has been a long time in the Chinese economic market, because of its characteristics of innate, convenient, simple transaction entry, and become the main source of private and corporate to obtain various flexible funds. Especially with the steady implementation of China reform and open policy, great changes have taken place in economic society, international status is also rising, since twenty-first Century, Chinese played an irreplaceable role in the international arena, China mainland and international market economic exchanges have become increasingly frequent, various rapid development of small and medium enterprises, scale unceasingly expands, between individuals the demand for funds is very large, large houses, medical, small to weddings and funerals, tourism, are in need of cash to support, therefore, folk financing demand is very strong, but we encountered the reality is, existing credit channel can not meet the actual demand. Contemporary Chinese government attitude to folk financing has been very ambiguous, ready to accept either course, legal and policy provisions are not clear, inaccurate positioning of private finance, people do not feel the pulse of the government, will doubt the legitimacy of the folk financing behavior, some brave deeds, earn basin full earthen bowl; some people are back on fraud charges, even be executed. This paper first presents an overview of folk financing, folk financing for tomorrow, to the modern financial development is the inevitable trend of. Then from the famous Wu Ying case and have outstanding case as a starting point, analyses the operating framework of the folk financing, describes the legislative status and defects of the folk financing of our country, through the folk financing behavior of developed countries are summarized and the reference, the legal regulation system suitable for our country, and further through the relevant laws and regulations to demonstrate the legality of folk financing of our country, and put forward the construction of folk financing legal system recommendations.