A Study On The Legal Issues Of Private Loan Registration

As an important part of multi-layer financial market,private loan is the key to encourage and support the healthy development of private investment.It is also the urgent task to control illegal fundraising,usury and illegal collection.After the private loan crisis in Wenzhou,Erdos and other places in 2011,Wenzhou launched the private loan registration initiative with an aim to regulate the development of private fundraising,the experience of which has been learned and widely used in more than ten provinces(autonomous region).Based on the so called “Wenzhou Model” which came mainly from Wenzhou pilot and the data collection of regulations and registering platform of private loan registration,the thesis explores the legal issues in the private loan registration pilot and proposes relevant suggestions and solutions.The thesis is hoped not only to improve the system of private loan registration,stimulate the party's registration will,regulate private loan transactions and prevent potential disputes but also to strengthen the legal regulation of private loan and further improve the effectiveness of private financial service and the real economy.Apart from the introduction and conclusion,the main body of the thesis is divided into five parts.The fourth part “problem analysis” and the fifth part “suggestions and solutions” are the highlight of this thesis.Part One provides a general overview of “private loan registration” and “Wenzhou Model”.One the one hand,the concept of “private loan registration” will be fully defined based on the concept of private loan and the importance of “private loan registration” will be illustrated from the macro and micro perspective.On the other hand,the background of “Wenzhou Model” will be explained,the 16 regulation on private loan registration in the cities and counties in the 11 provinces(autonomous region)be summarized and the analysis of the construction and function of 13 registering platforms under “Wenzhou Model” will be conducted.Part Two is the “Principle and Practice of Private Loan Registration”,which is made up of the theoretical exploration and case study of private loan registration.The former part points out that the private loan registration is highly necessary but less developed and that the registration initiative remains an important approach to regulate private loan.The latter part is aimed to verify the feasibility of the registration initiative through analyzing the stimulation of needs in fundraising markets,the guidance of state policy and experience from Wenzhou pilot.Part Three “Target and Model Selection” addresses the identification the model of registration.The registration can be restricted to business private loan registration by category,large private loan registration by sum and corporate as well as individual loan registration by subject.The registration can neither compulsory nor voluntary.Instead,a model compulsory within the range and voluntary out of the range will be highly recommended.Part Four is the “Problem Analysis of Private Loan Registration”.An analysis of 16 regulation and 13 registering platform is conduced and the findings are as follows: there are more descriptive rules than legal regulation leading to a poverty of legal guarantee of private loan registration;registering agencies are faced with conflicts between interests and functions,inconformity between risk taking and business lines;the construction of online registering platforms have fallen far behind;such issues as the high cost of registration,deficiency in information protection,rigidity of interest rates control and unclear efficacy of registration materials has resulted in a relative shortage of incentive instruments and low registration will.Part Five offers “suggestions and countermeasures on perfecting private loan registration” from three perspectives.Legislatively,the selective national unified legislation,the hybrid governance of hard law and soft law,and the integration of responsibilities of the regulatory authorities,industry organizations and market entities should be adopted.With regard to the registration bodies,industry associations should be urged to set up registration bodies,to reasonably allocate risks,and to strengthen the construction of online registration platform.And in terms of the incentive measures,the registration expenses should be reduced or exempted;the tax preferences should be adjusted;the protection of registration information should be reinforced;adjust the floating rate of interest and record the validity of the record in the notarization,guarantee and procedure.