Study On Legal Regulation Of Private Lending

Nowdays the economy is rapidly developing and private lending's development trend is also in full swing.Due to it is lack of national regular financial regulation and specialized legislative rules, the crazy development trend brings private lending crises of bad effect.From 2011 to 2012,Wenzhou's boss “run road”events continue to occur,the boss of Ordos “jumping”agitation keep on happening,private lending crises spread throughout the whole county.This urgently needs to have a right attitude towards private lending,strengthen the legal regulation of private lending while giving proper legal status to private lending.For that,this paper is discussed from the following four aspects:In the first part of this paper,after the definition and analysis of the basic types of private lending, private lending is not approved by the state to set up and nor is it subject to the state's financial supervision and legal norms.Its essence is the creditor's rights and debt relationship between equal subjects, which can be divided into mutual loan, for-profit commercial loan and non-financial enterprise lending.Due to the suppression of informal finance, private lending in China has no legal status and crazy development in the ground, resulting in a serious loan crisis.In order to regulate private lending and safeguard the legitimate rights and interests of the subjects,we should attach importance to the regulation of private lending behaviors.The second part of this paper makes a further analysis on private lending behavior's legal provisions and existing problems. The main bodies of private lending are lenders and borrowers.Lenders are specialized in profitable lending activities,and borrowers are who accept the loans.This paper considers that theexisting provisions of the private lending has be scattered, poor coordination and operability, the result is not easy to master and comply with.Therefore, it is necessary to improve the legal regulation of private lending behaviors.The third part of this paper explores the advanced experience of Wenzhou, Ordos and Hongkong on private lending.Wenzhou and Ordos respectively issued ?regulations on the administration of Wenzhou folk financing ? and ?interim measures for Ordos city regulate private lending? to seek for ways of reforms and developments on the existence of private lending crises point. The prosperity of HongKong's financial is dependent on the private lending.It has a complete ?the moneylender ordinance? to regulate private lending.Although Hong Kong's ?the moneylender ordinance? is enacted earlier,but its rules are very complete.The first experience in these places is worthy of learning,for example in enacting the law of private lending and regulating the private lending behaviors.The fourth part of the paper puts forward the way to regulate the private lending.Combining the current situation of development of private lending with the above areas' experiences, after all,under the condition of making up for the folk lending's special legislation blank,we should also attach importance to the legal regulations of private lending behaviors.