Dilemma And Law Counter Measure Of Private Lending

Into the twenty- first century, the country have undergone illegal fund-raising private business owners of high interest loans, private enterprises and other private lending funds fracture criminal phenomenon. Business owners escape debt, private lending institutions have been closed down, so we should focus our attention on private lending problems. The formation of private lending dilemma has its deep origins, look at the overall development process of private lending, the state’s private lending institutions and policies of repression, not only will cause financing difficulties of small and medium private enterprises in the situation, and will lead to real economic downturn, disrupted financial order, the national macro-control difficulties. Therefore, we must accelerate our private lending market norms pace. Specifically, we can find solutions to the problem through the analysis of the causes. namely through the development of specialized private lending laws, and increase the intensity of private lending regulation comprehensively promote the interest rate market, improve the private lending market access mechanism and exit mechanisms, accelerate the pace of improvement of the socialist market system of credit and other strategies to guide and regulate the development of private lending. During the analysis in this article, the author discusses the institutional roots of folk initial difficulties borrowing formation of thinking about how to use the law to regulate private lending to direct private lending sunshine, standardized development is the key to this article.The text of the article is the following:The first chapter introduces the significance of the introduction of private lending. The second chapter is the predicament of private le nding and performance issues. The first section discusses the situation in accordance with domestic and foreign academic research on the private lending, from multiple angles interpretation of the concept of private lending. This paper explores the range of private lending specifically to form a more profound understanding of the specific. Section two looking to the future based on the current situation Section. This section provides a basic overview of the country on the basis of the development of private lending country, analyzes legal risk hidden behind the private lending. The three main performance of the private lending predicament. First, the high interest debt, Small and medium enterprise financing in deep trouble, the second is prone to lead to financial crimes, including crimes related to financial fraud based; the third is likely to lead to violent crime. Section III is the predicament of private lending usury problem. Comprehensive perspective of economics and law to analyze the main causes of usury : First, capital seeks profit; two, "inflation expectations" psychological make private lending interest rates continued to rise; three, high-risk high-return requirements.The third chapter describes the predicament of private lending system root formation, This chapter points out the cause of private lending predicament. The reason lies in the following four areas: First, the country’s financial system constraints, our long-standing financial and non- formal to formal financial division of financial markets, "dual" far-reaching impact of the financial system. In addition, China is the largest developing country, there is a large degree of financial repression phenomenon. Second, the constraints of the legal system as a form of non- formal financial state, private lending in the private sector to take root in soil, lack of specialized private lending laws regulating them; third is the lack of institutional credit, National credit guarantee formal financial institutions, and because of their own unique attributes of private lending machine can only rely on their own, to take greater risk of moral hazard and adverse selection in the course of business.Chapter IV, text analysis of the legal system of private lending, To investigate further promote private lending standardized measures,this chapter analyzes the current relevant laws, administrative regulations, and judicial interpretations of private lending。Chapter V presents measures to solve the dilemma of private lending, this chapter is a summary of the previous chapters, this chapter give personal advice about how to solve the private lending dilemma. this chapter shows that we need to enact a special law of private lending, modify the subject of conflicting laws and responsibilities, clear regulatory bodies, build a comprehensive, multi- level monitoring system, the establishment of private lending market entry and exit mechanisms, and comprehensively promote the process of marketization of interest rates, to accelerate the pace of improvement of the market credit system and other measures to guide and regulate the development of private lending.