Development And Supervision Of Private Lending In China

Our private lending has a long history，and it has experienced varying degrees ofcombat and banned, but private lending activity remained tenacious existence anddevelopment. And private lending provides financial support for private small and mediumenterprises, makes up the defect of the formal financial institutions, and promotes thedevelopment of small and medium-sized private enterprises.Private lending develops rapidly and the scale expands gradually, the influence of pprivate lending is becoming more and more profound, it plays an important role in thecurrent economic development. However, we should also see the problems of their own.Due to the lack of normative, its own financial regulators are difficult to carry on theeffective supervision, causing the deterioration of private lending. Therefore, how to treatprivate lending problems correctly and be included in the scope of regulation needs to befurther studied.The full text is divided into six chapters. First, the paper makes simple exposition ofdomestic and foreign research. The second chapter introduces the development of ourcountry folk lending, analyzes the current situation of the development of private lending,and estimates the size of private lending. The third chapter gives out the theory andrealistic basis of the existence and development of private lending. The fourth chaptermakes the analysis of the positive and negative effect of folk lending. The part carries onempirical studies between the folk lending and economic growth, which uses econometricmethods to do the Cointegration test and Granger causality test. Test results show that theprivate lending and economic growth exist Cointegration relationship and significantone-way causation. In other words, the development of private lending plays an importantrole on economic. In the fifth part, we can obtain relevant international reference andinspiration by comparing and analyzing the United States, Japan and Taiwan and othercountries (regions) private lending development process. The last chapter puts forwardsome policy suggestions based on the situation of China’s financial development situation.We should establish the legal status of private lending and strengthen supervision so that itplays the positive role of private lending.