The Legal Regulating Of Folk Loan Risk Control

In the process of financial legal system reform, the formal financial system of China cannot meet the demand of economic development in the macroscopic, folk lending in the process of market transaction arises at the historic moment, is the behavior adapting to the market economy law of development, and promoting social welfare. Since the reform and opening up in 1970 s, economic developed in high-speed, the financial liberalization has been promoted further, capital has accumulated in folk, but there hasn't have enough investment channels, financial institutions like bank have high loan thresholds, small and medium-sized enterprises have to face serious cash flow crisis and financing difficulties.Take this opportunity, folk lending expanded its size rapidly, and played a positive role to the development of private economy and even the national economy, became an useful supplement to formal financial. The emergence of folk lending is a strong challenge to the existing financial system, promoting the rapid development of the nation's financial system reform process.Since 2003, the state gradually relaxes restrictions on folk micro finance, and formulated a series of supporting policies, is conducive to the further development of folk lending. Folk lending to a certain extent solved some of social financing needs, however, due to the legislation hasn't adapted, management hasn't reach the designated position either. Some criminals drive by the profiteering gave the folk lending market some potential risks, affected the healthy development of the economic environment and the social order of harmony and stability. In this case, based on the experience of the developed countries, based on maintaining the orderly development of macro financial markets, the improvement of the folk lending risk control system should play the key role.