Research Of Wenzhou Pirvate Lending

Developed private economy in Wenzhou is a major feature of the economy, andeconomic development is inseparable from the private financial support. Despite the formalfinancial system to support private economic development has played an important role, butmany small and medium enterprises, individual industrial and commercial households ascredit conditions, collateral and other aspects of the disadvantages, it is difficult to obtainloans from the formal financial channels, so private loans become necessary supplement.Wenzhou private lending country famous, and now, it is these private capital, makingWenzhou bosses in trouble. Since April2011Jiangnan leather chairman Huang missingsince the incident intensified private enterprises in Wenzhou boss on foot, nearly40bossmissing. Month of September only, since there are close to20, even in the Mid-Autumnnight there are multiple bosses collective flee.At present, our country is in the key period of the system transition, structuraladjustment and social changes. In this period, the private lending has quickly development,it has variety forms. Due to the lack of the relevant laws and regulations as well as thenecessary regulatory measures to regulate in this field, therefore, at present there are manyproblems in private lending of our country, it caused many negative effects to the economicdevelopment of our country, it is imperative to regulate private lending. illegal privatelending can cause all kinds of financial risks, for example,held hostage, illegal detention,burning residences and so on, increaseing social disharmonious factors and produceingmany social problems. On the other hand, with our country economy fast development andmore and more support the non-public economy. The small and medium-sized privateenterprises develop rapidly in our country, but at the same it intensitied the small andmedium-sized enterprise financing difficult problem because of the lending prejudice fromthe formal financial institutions, it will promote the development of private lending. Thedevelopment of private lending to make up for the inadequate formal financial services, isnot only beneficial to promote the normal development of the financial institutions in ourcountry, and promote the development of national economy through that the private lendinginstitution provide the financing support for the small and medium-sized privateenterprises，agriculture projects and resident individuals. Therefore the private lending hasbroad survival soil and a huge development space. To sum up, the folk lending is faced with many challenges and is faced with unprecedented opportunities.