Research On The Private Lending Legislation

In the era of rapid development of finance, private lending which is the ancientmeans of financing is not becoming shrinking and stagnancy with the development offinance, but coming alive in its unique way in county economy in our country.Thatprivate lending can develop from centuries ago until now is tightly connect with itsunique feature, flexible, fast, efficient.Though it still exists some disadvantage likebeing abused by illicit financial activity, the fact is undoubted that there are moreadvantages than disadvantages. Thus,our attitude toward private lending shall beleading instead of banning,just bettee the legislation of private lending.The first chapter of this paper mainly discriminate the concept of privatelending,and concisely state the current situation of private lending from the severalaspects in our financial market, pointing out that private lending is easy to be used bythe illegal financial activities.Based on the analysis of advantages and disadvantagesof private lending,we can be informed that the existing of private lending is inevitableand necessary under the background of the development.The second chapter mainly through the comparative analysis between Wu Yingcase and Madoff case as well as the Wu Ying case and Sun Dawu case, to find out thereasons why private lending is easy to be abused by illegal financial activities,andthen obtain three aspects of reasons,which are the undefined legal status of privatelending,the lack of supervision system,the lack of relevant system. The third chapter elaborates the present private lending legislation situation,andsummarily lists the articles at present in all sorts of legal provisions as well as rules,and finally gives my own analysis on our private lending legislation shortage.Theforth chapter shows the present legislation in foreign countries, with mature capitalmarkets, and points out that the foreign legislation can be used for reference, hopingto contribute to our country private lending legislation.The fifth chapter provides solutions to those reasons mentioned by the secondchapter with the angle of legislation,through elaborating our present legislation aboutprivate lending and current legislative experience of foreign countries,I think ourcountry should learn from foreign legislative experience to legislate our own lawsabout private lending as soon as possible.And also provides solutions from the systemlevel.That we can establish the private lending registration service center, set up riskcontrol system, lower taxes, increase government support and so on to match up theprivate lending system.