Research On The Legitimacy Questions Of Private Lending

The emergence of private lending has played a pivotal role to promote China’s social and economic rapid development, it is an important complement of the formal financial in our country, the small and medium-sized enterprises and individuals find it difficult to get financial support from formal financial institutions, so they turn to private lending areas, which has left many private lending to become the new channels to solve the problem of financing of small and medium-sized enterprises, play an important role in the environment of market economy. But for a long time, because our country to the folk lending practices, a series of regulatory problems lead to the deformation of folk lending growth in China, even many behavior is in a state of illegal, breeding of illegal absorb public deposits, fund-raising fraud, and even violence illegal phenomenon such as debt collection, eventually produce financial damage. These risks to the healthy and orderly development of private lending market has a great resistance, due to the folk lending itself has features such as dispersion, concealment, if private lending lack of legal supervision system, private lending is easy to free from the normal regulation, so as to develop into some social problems such as illegal underground Banks, disrupt the normal financial order. So this article in view of our country at present the folk lending legal supervision system, this paper demonstrates the normative analysis and comparative analysis and so on, first of all, from the perspective of the concept and characteristics of private lending, the difference between the private lending and illegal financing is discussed, and the meaning of the folk lending, and then on the basis of the analysis of the folk lending legal risks, discussed the significance of folk lending supervision, and the related provisions of the law regulation of private lending in China and the present situation of the development of the legal system, the analysis of the current our country folk lending problems existing in the legal supervision system, and provide perfect system for the advice.