Research On Legal Issues Of Financial Interest Rate Regulation

China’s lending rate has been regulated by the Supreme People’s Court and the People’s Bank of China,and there is conflict between judicial power and administrative power.In financial loan contract disputes,when the sum of interest,default interest,compound interest and other expenses advocated by the parties exceeds the upper limit of private loan interest rate,judges directly or with reference to the private loan interest rate in order to implement the “Prohibition of usury lending”in the Civil Code and protect vulnerable borrowers.Interest rate regulation is facing changes: “class financial institutions” are independent from private lending,and the interest rate ceiling rules of private lending are no longer applicable.The central bank cancelled the ceiling of loan interest rates.This means that financial lending is faced with a dilemma that can’t be relied on in the regulation of interest rate ceiling.Does the cancellation of loan interest rate by financial lending violate the spirit of “Prohibition of usury lending” in the Civil Code?Can the judge apply the limit of private lending interest rate based on the principle of fairness? The problems can be solved from three aspects.First,pay attention to the restraint and modesty of justice,and reconcile the conflict between judicial power and administrative power in interest rate regulation;Second,reconstruct the interest rate regulation system,and apply different interest rate ceiling standards based on the financial system.The interest rate is “loan market quoted rate”,according to the judicial interpretation.The lending rate of formal finance and “class financial institutions” can be applied to the market interest rate announced by the central bank,and when the two conflict with each other and appeal to the court,the interest rate shall prevail for judgment;Third,improve the financial market interest rate supervision mechanism,and make up the supervision shortcomings.