Legal Issues Of Governance Of Private Lending

In recent years, the scale of our country’s folk lending has beenexpended, and the forms have also been multiple. This can meet theneeds of temporary financing of individuals and small or medium-sizedenterprises to a great extent, and provide a strong impetus for the localeconomic development. However, the laws, regulations or rules aboutthe folk lending have so long been scattered. Our country hasn’t formeda unified, clear and specific management specification, and hasn’tdefined the legal status of the folk lending, which lead to lack the legalbasis when dealing with the dispute. So, academic researches about lawsof the folk lending will provide the government with a good reference inhow to regulate, guide and manage the folk lending in the future.Given all that, the author submits the questions about how toregulate and manage with the development and marketization of the folklending, which is also the necessity of this thesis. The thesis starts fromthe concept, the characteristics, the form, the reasons of existent and thelegal problems of the folk lending firstly in order to get preliminaryunderstanding of the folk lending. Secondly, this paper carries theresearch from function and location of the folk lending, which in order to provide the theoretical foundation of this paper. Then, the authorthinks that the folk lending is the inexorable trend of the process of thefinancial market, and elaborates the opening folk lending of our country.Finally, the thesis focuses on analyzing the defects of legal system of ourfolk lending, and put forward the reasonable legal regulations.The conclusion is: Folk lending development has particularity inour country, But the current our country’s regulation of the economy,cannot meet the needs of economic development. Our country shouldperfect folk lending supervision legislation, deregulation, under theprinciple of proper regulation to legalize private lending, formulatedspecifically for the folk lending supervision legal system.