Researches On The Legal Regulation Of High Interest Loan

At present, the high interest loan in China has aroused widespread concern.It facilitatesthe private financing, but at the same time, it also brings too many adverse effects. The mainreason of “Wenzhou” events is that the locative high interest loan breaks down the capitalchain. The financial market is an important part of the market economy, so it has to operate inaccordance with the laws of the market. But sometimes the market laws refuse to work, wemust set up an effective system in order to supervise it. Therefore the improvement of legalregulation to strengthen the administrative control is the only way to solve the problem ofhigh interest loan.This article discusses the basic theory of high interest loan firstly, especially about thedefinition of high interest loan made in different periods, trying to figure out the essentialcharacteristics of the contemporary high interest loan, and then studies the relevant legislativeand judicial practice. At last I give out my suggestions on the legislative and administrativeregulation of high interest loan, with reference to laws from other region.This article consists of four parts.The first part is about the basic theory of high interest loan, including conceptualanalysis, cause and impact analysis. In addition, the theory of high interest loan rates isinvestigated, to lay a theoretical foundation for the subsequent sections.The second part presents some legislations and regulatory experience in our country, andI find that there are many aspects need to strengthen in this field.The third part introduces the successful experience of high interest loan regulation inHong Kong, the United States and Japan, which provides us some ideas on the legalregulation in China. The basic reality in our country has also been taken into account ofcourse.The fourth part is the focus of the full text. I create a legal frame which includes civil andcriminal legislation from countrywide to provincial level to cover high interest loan. There isan administrative enforcement for those specific issues occurred all the time so as to build a comprehensive legally regulatory system.