Research On Legal Regulation Of Folk Lending In China

The way of folk lending has already existed for a long time in our country.Withthe development of our economic, in the south of our country, small andmedium-sized enterprises are developing rapidly.If the enterprises want todevelopment,they will need a lot of money.After all, small and medium-sizedenterprises are different from the large enterprises.There will be a long time if theywant to loan money from banks.Based on some problems,banks maybe not loanmoney to small and medium-sized enterprises.There is a great possibility of theshortage of fund,and lead to capital chain rupture,directly affecting the long-termdevelopment of small and medium-sized enterprises.In this context,the folk lendingappeared.Folk lending is a double-edged sword.On the one hand,folk lending is a flexibleform,catering to the people’s trading habits,easing the problems which the small andmedium-sized enterprises are difficult to loan.On the other hand,we should know thatour country does not make a special law rules for folk lending.Many people notice thedisadvantage of the law, so they made a usury business to get excess profit,affectedthe development of economic.Therefore,we must profound understand the double-edged of the folklending,confirm its in the position of the financial system in China,promote folklending standardization as soon as possible, guide and regulate the beneficial to the development of economic and social development, try to eliminate the negativeeffects, so as to promote the further development of the economy in our country. Fromthis hand, researching the legal regulating question of folk lending has a importantpractical significance. This paper will be divided into four most to research the legalregulations of the folk lending, chapters brief content as follows:The first chapter " the inevitability of folk lending and the existing problems",mainly discusses the concept and the inevitability of folk lending; The effects to ourcountry economy development, including its positive effects and negative effects;From the scale of the folk lending, subject, interest rates three aspects analyze thepresent situation of folk lending in our country,to make a probably introduced.The second chapter "the laws of folk lending in our country ", mainly discussesthe existing system,the legal system and the supervision mechanism;The differencebetween illegal funds,usury and folk lending; Folk lending mode innovation and itsstandard basic ideas.The third chapter "folk lending institutions mode and the complete system", thepaper analyzes the folk lending model of innovation such as microfinancecompanies,rural banks and rural mutual fund.The fourth chapter " new model of the folk lending-ordinance the legislativeproposals", this is the focus of this chapter, mainly from the legislation of guidingideology, the two main system design to construct the ordinance, makes thespecifications folk lending become barriers. We wish to contribute our power to thedevelopment of folk lending.