Research On Legal Issues Of Private Loan In China

With the rapid development of economy, the private loan has become a useful and necessary complement of regular finance activities in our country. It is of great use for accelerating the financing of small and medium enterprise, expanding investment channels of the general public etc. However, problems and offences such as usurious loan, fraudulent fund-raising, illegally absorbing public deposit etc. have arisen because the relative laws and regulations are incomplete. It has negative influence on the finance order, economic development and social stability. According to statistics, the number of private loan cases have become the second in our country, and showing an upward trend year by year. We have carried out active exploration, including established the financial reform pilot area and promulgated<the provisions of the Supreme People’s Court on Several Issues concerning the application of law in the trial of the case of private loan>, which expanding the scope of the application of private loan and establishing the new interest rate standards for it. But it still lack the clear provisions of the financial supervision. In this paper, we first analyze the concept of private loan; secondly, analyze the current situation and defects of private loan; finally, put forward the legislative proposals to improve of private loan.In summary, this article is divided into three parts, the content of the paper is as follows:The first section is mainly on introducing the concept of private loan. First, it analyzes the definition and legal nature of private loan. It is a contractual behavior. It happens between a natural person, legal person and other organizations, useing their own funds to lending, and repaying capital with interest before the expiry of the agreed loan period. Second, it summarizes the four types of private loan, including living loan, enterprise financing loan, profitable loan and intermediary loan.The second part mainly introduces the current situation and defects of the legislation of private loan in China. First, it analyzes the standard of conviction of illegal fund-raising. Second, it analyzes the standard of private loan rate. Finally, it analyzes the problems existing in financial supervision, such as illegibility of the supervision identity and responsibility, is not clear, lack of market access and risk control law, lack of punitive regulatory sanctions and lack of information evaluation and disclosure laws.The last part are the studies for the legislative proposal of private loan. First, we should establish a multi-level legal system of private loan. Second, we should establish the supervision legal system of private loan, such as build the central bank-led comprehensive regulatory system and self-regulatory regulatory system. Finally, we should perfect the rules of financial crime in criminal law, including make the criminal usury law and improve the legal provisions of illegal fund-raising crime.