An Analysis Of The Related Legal Issues Of Private Lending In Shanxi

Private lending is the product of the development of the commodity economy. It contributes to alleviate financing difficulties of the enterprises, especially small and medium-sized enterprises, and promote the development of the national economy; however, because of inherent civil, it also brings a great of risks. In China, private lending has gone through from absolute prohibition to limited control to allow the procedure. In Shanxi Province, with the rapid economic development, private lending has been the development and scale, while legal issues abound. Therefore research on related legal problems in Shanxi province is of great practical significance. In2012, the State Council set up in Wenzhou pilot zone for comprehensive reform of the financial, as well as private lending legal issues research provides use for referenced in Shanxi province.This article aims to investigate the legal issues of Shanxi Province’s private lending, and puts forward suggestions for improvement, is divided into four main parts.The first part, private lending is a financial way between citizens, between citizens and non-financial enterprises, as well as between the non-financial; private lending contracts is the kind of loan contracts, but with a particularity; private lending interest is important, interest rate can not exceed four times similar lending rates of banks, and prohibit private lending interest withholding compounding.The second part, analyze the situation of private lending in Shanxi Province, including the private lending market scale, the borrowed funds flow to the real economy, the subjects has the particularity,the gradual rise in interest, and high interest rates trend.Third part, on the basis of the analysis of the current situation in Shanxi, investigate the legal issues of Shanxi Province’s private lending, including private lending legal norms, lack of appropriate risk prevention mechanism, the frequent cases of private lending, the weak legal consciousness of private lending subjects etc., to investigate perfect Shanxi Province’s private lending legal advice.The fourth part is the focus of this article, on the basis of the existing legal system in China, according to the legal issues of Shanxi Province’s the private lending, learn from Wenzhou financial reform, and propose recommendations to solve the legal issues of Shanxi Province’s private lending. Shanxi private lending needs to enact local laws and norms; establish and improve the market access system, including access to private lending institutions, access to private lending funds, and private lending institutions personnel access; establish and perfect the market exit mechanism, including exit of non-financial enterprises and individual citizens; establish and improve the private lending credit information service system; improve the system of guarantees and collateral; learn from Wenzhou comprehensive financial reform, establish and perfect the system of registration of private lending; pay attention to judicial relief; strengthen civil publicity of private lending’s knowledge; government preferential policies.