Research On Legal Regulation Of Folk Loan

Private lending which is an important part of China’s financial lendings, has playeda pivotal role on our economic development. The more and more active private lending,caused by the difficulty that small and medium enterprises making loans from banksand other formal financial institutions, has aroused the high attention of our government.Through the questions of the applicable law in commercial trial, Supreme CourtPresident Xi Xiaoming has affirmed lendings between the enterprises which hasengaged in financial business qualification. Folk financing management regulations ofWenzhou City, which elected by the12thPeople’s Congress Standing Committee ofZheJiang Province, considered temporary transfers of private lending due to the need ofproduction is legal. it showed that we have made overall improvement and breakthroughto solve the problem of regulating private lending. Current issues facing the legalregulation of private lending are as follow：first, we still have no a detailed and uniformlaw to regulate the private lending; then, private lending regulations scattered in otherlaws and regulations are inconsistent; and at the same time, it’s general for the issuesabout the main provisions of private lending, interest rates and regulatory and so on. theauthor propose the solution for above problems: the frist of all, we should position ourprivate lending behavior in reason, and enact a specifical law regulating private lendingas soon as possible; second, specify the qualification of private lending and interestrates in detail; third, establish of regulatory mechanism of private lending of our country.By that, we finally could make a coordinated development between private lending andbanks and other formal financial lending, then let it contribute to promoting China’seconomic development.