Private Lending Research

Private lending has made important contributions to the social and economic development in China,especially major contributions toward the booming of private economy in the Wenzhou area on the background of the China’s dual finance.The positive role of private lending can not be doubted,but with the promoting of market-oriented reforms in China’s interest rates,Private lending interest rates do the contrarian behavior of waying up.Even evolved into a private lending crisis.How to view private lending, as well as the future direction of development in the private lending is what is China’s urgent need to address the problem.The article from the contrarian behavior of private lending in the country’s financial market reform, first introduced the current situation of China’s private lending, private lending causes of the crisis, in order to answer private lending and contrarian behavior of macroeconomic factors;Then private lending in Wenzhou area as the main object of study, analysis of the Wenzhou area of private lending so prosperous socio-economic reasons,On this basis, in-depth study of the organization and operation of the mechanism of private lending in Wenzhou, which found that the characteristics presented by the Wenzhou private lending.Traditional features and new features, this also answers the Wenzhou private lending contrarian behavior of microeconomic factors..Wenzhou private lending problems, we should take what kind of approach to the governance of private lending.Only its in-depth understanding and knowledge, in order to take effective measures.So the next article in the private lending risk analysis and credit risk through the opportunistic behavior of multiple game through thorough analysis and interpretation of the private lending existence and development of rationality and the urgent need for restructuring of the endogenous demand.Finally, learn from Taiwan experience and Taizhou commercial banking experience, the private lending to formalize the optional path.The tradition of mutual aid private lending is to maintain its normal functioning by the special trust in the traditional moral constraints. Widespread natural economy and rural areas in China to adapt for such private lending should learn from the experience of Taiwan of Legislation to make it legal existence from the ground toward the ground.With the expansion of the scale of private lending organizations, the prevalence of opportunistic behavior,The original organization and operation of the mechanism and thus lost the natural cost advantage, so change the special trust for the general confidence, the personification of the transaction to a non-personified trading on the direction of further development of the private lending.Like some of the larger, there are certain organizations together, can learn from private financial institutions such as Taizhou Commercial Bank of commercialization mode of operation, and to learn from their internal control system and management system, and thus towards the regularization of the path of development.