| Recently,with the rapid economic development in China,there has been an increasing number of transactions among the private financial institutions.The private lending market is growing exponentially,and with consistent evolving products that adapting to the market needs.As the regulatory bodies are still catching up,there has been a number of private lending transactions that reach a level of breaching the law.For example,the online micro-loans,mortgage loans,car loans,campus loans and other illegal “routine loan” that have been frequently reported and heavily disguised.Nevertheless there has been very little systematic research on these “routine loan”,and only a handful academics have studied how they can be governed from the viewpoint of public administration.What is the definition of “routine loan”? What are their key characteristics? What are the categories? How can the public management departments provide better prevention and tighter controls? It is crucial to take those factors into consideration,and conduct a comprehensive research on "routine loan".In this thesis,the research methodology is mainly through the following methods,such as text analysis method,system analysis method,case analysis method and interview method.In this thesis,the “routine loan” are mainly divided into two categories.Reveals the common practices of “routine loan” schemes and operation process.In addition,there’s also a thorough analysis on the key challenges the regulatory bodies face.On the basis of overall argument,the thesis from a holistic oversight perspective proposes multiple highly targeted regulatory methods,and provide reference to public administration departments on preventing,cracking down and regulating “routine loan”.The research reveals that “routine loan” disguise themselves as private lending,through signing blank contracts,forcing contract default,inflating loan principle,purposely blowing up the debt and other traps to fake loan contracts.In addition,“soft violence” are used during debt recovery,and even close loose ends by exploiting political power.These scheme groups are often well organized operations,and “soft violence”focused.There are multiple factors that lead to the creation of “routine loan”.There are external objective factors,such as compartmentalized organizational structure,lack of appropriate and specific governing regulation for the government overseeing agencies,insufficient government funding and grants,incomplete mechanism of accountability etc.And also distrust between the varies departments and stakeholders involved.All government agencies,as well as other involved stakeholders,should actively respond via stronger communication strategies,achieving a common understanding of the seriousness of the situation to achieve an unified prevention strategy,enhancing and leading in both financial and IT industry.Together,to establish an incentive and accountability mechanism that comprehensively implement policies,specifically targeting these type of schemes so that together fundamentally eliminate the “routine loan” schemes and maintain a health and harmony financial and social order. |
