Cause Analysis Of Wenzhou Private Lending And Development Pattern

In recent years,private lending has become a very hot topic.Private lending playsan invaluable role on economic development,especially the development of small andmedium-sized enterprises.It is the inevitable outcome of the socio-economicdevelopment on a certain stage,the gradual accumulation of business and personalwealth,industrial capital to financial capital,and the formal financial can noteffectively meet the needs of the community.Meanwhile,it is a useful supplement toformal financial.This article researched from private lending, defined the concept of privatelending, summarized the current literature on WenZhou private lending,and thenanalyzed the WenZhou private lending by four parts.The first part introduced current status of WenZhou private lending, expoundedthe scale of WenZhou private lending, interest rate, and current financial reform inWenZhou and WenZhou private lending crisisThe second section described the reason for the formation of the WenZhouprivate lending by five levels.The third part analyzed the relationship between the scale of WenZhou privatelending and economic growth, it draw the conclusion that there is a mutuallyreinforcing relationship between them.The fourth section described the future development of WenZhou private lendingmodel, and guided WenZhou private lending to Sunshine Avenue up.