The Legal Regulating Of The Folk Lending Interest

Folk lending is an important part of the financial system in China. Folk lending hasplayed a prominent role in helping small and medium-sized enterprises to raise money fromthe public for many years. However, folk lending is now starting to break away from theregulation of the country. Folk lending rate is extremely high, which not only hinders theimplementation of national monetary policy but also increase the country’s financial risks.The high interest rate of folk lending is an economic problem. And it also triggers a series ofsocial problems. Thus the folk lending interest rate control is imminent.Based on the analysis of folk lending, the dissertation discusses its formation mechanism.This dissertation also gives some suggestions concerning folk lending regulations afteranalyzing the experiences of other countries. Apart from the introduction and the conclusion,there are six parts in this dissertation：The first part introduces two cases and some related questions. The different results ofthese two similar cases in the court verdict have to some extend showed the limitation of folklending.The second part of this thesis is the theoretical analysis of folk lending interest rate. Bydefining folk lending, analyzing the formation mechanism of folk lending interest rate andreferring to the articles of many famous schorls, this paper provides a deep analysis aboutfolk lending interest rate.The third part introduces the regulation of folk lending interest rates in our country andanalyzes the reasons why these regulations do not wok.The forth part is in the perspective of “Hong Kong government sue YanJingTong” toanalyze the cause of the high flok lending interest in our country.The fifth part shows three regulation modes of folk lending interest rates and points outsome differences of these three modes.The sixth part gives some specific suggestions about improving the system of folklending interest rates.