The Analysis Of The Decriminalization Of The Behavior Of Relending A Loan Usuriously

Crime of relending a loan usuriously was added to the Criminal Law in China in 1997. The social environment corresponding to the Criminal Law revision in 1997 was that China’s credit market is mainly from state-owned funds, its total amount was controlled by planning authorities of the government, interest rates were fully controlled by the functional departments of the government, and the allocation of credit funds was primarily based on the government’s plan instead of the relationship between demand and supply. However, with the arrival of the era of financial globalization, China has accomplished the transition from management-planned credit market to marketized credit market. Especially, the Third Plenary Session of the 18 th Communist Party of China(CPC) Central Committee in 2013 decided to perfect the financial reform, loosen the constraints on the private capital entering the banking industry, and expedite the process of marketization, which significantly indicates the continuous liberalization and opening of the future credit market of China. Besides, the criminal policy of “combination of leniency with punishment” has replaced the criminal policy of “strike-hard.” And the decriminalization of the inappropriate accusations is the objective requirement of the legislative guiding function of the criminal policy of “combination of leniency with punishment.” Therefore, the author believes it is necessary to study the abolishment of the crime of relending a loan usuriously under current circumstances. Currently, people are mostly focusing on the studies of related problems about the criminal constitution and the judicial ascertainment of the crime of relending a loan usuriously; while only one paper named “An analysis of the decriminalization of the crime of relending a loan usuriously – taking the case that Xi and Zhou relend credit funds as an example” by Difei Jiang in 2014 discussed the decriminalization of the crime of relending a loan usuriously. According to above reasons, the author writes this dissertation named The Analysis of the Decriminalization of the Behavior of Relending a Loan Usuriously, trying to analyze the necessity of decriminalization of the crime of relending a loan usuriously based on the associated theories of Law and Economics, to compensate the deficiency in study of the behavior of relending a loan usuriously and provide some ideas for lawmakers to improve and perfect the financial legislation.Besides the conclusion, this dissertation is divided into four sections:The first section is the instruction of the studies related to this topic. This section aims to illustrate the significance of this study. The first goal is to point out the missing legislation and legislative dilemma by explore the legislation situations and the applicable conditions associated the crime of relending a loan usuriously. The second goal is to identify the deficiencies of academic research about the crime of relending a loan usuriously, especially certain outdatedness and one-sidedness of associated researches, by summarizing the current situation of researches on it. The third one is to briefly describe the innovativeness of this dissertation and clarify the theoretical and practical significances.The second section illustrates the reason of criminalization of the behavior of relending a loan usuriously. Though investigating and discussing the financial background, the logical premise(great harmfulness to public society), the legislative purpose and the background of criminal policy, and getting familiar with the history of the crime of relending a loan usuriously, this section provides the basis to further analyze the objective circumstances of the crime of relending a loan usuriously.The third section is the analysis of the necessity of decriminalization of the behavior of relending a loan usuriously. This section elaborates several reasons that the behavior of relending a loan usuriously should be decriminalized. Firstly, the financial background of criminalization of the behavior of relending a loan usuriously has changed; secondly, the logistic premise of criminalization of the behavior of relending a loan usuriously does not exist anymore; thirdly, the behavior of relending a loan usuriously should be within the scope of the Civil Law; fourthly, the criminal policy of “strike-hard” has changed to the criminal policy of “combination of leniency with punishment;” fifthly, the criminalization of the behavior of relending a loan usuriously is contradict to the unavoidably, economy and hysteretic of the initiation of the power of punishmentThe fourth section proposes other approach to deal with the behavior of relending a loan usuriously after being decriminalized. The first one is to practice the laws and regulations of contract and to investigate and affix civil legal liability. The second is to accelerate the establishment of financial integrity and the responsibility system for financial dishonesty. The third is to strengthen the supervision and regulation among banks and to perfect the mechanism of bank internal governance. The fourth is to implement the supervision and regulation of market access and regulate the illegal business operations.