On The Legal Regulations Of Folk Lending In China

A lot of business owners appeared Run away events in Wenzhou area, folklending problems gradually exposed. While we realized the important role ofprivate lending, and introduced some corresponding policy, the effect has obviouslimitation, there are still many shortcomings and deifciencies.In this context, this paper intends to examine various defects in our legalsystem of private lending, combined with the investigation of the Wenzhouprivate lending, found the backward of the private lending. Then by learning andassimilating the advanced foreign folk lending law. Finally put forward somesuggestions to perfect our country’s folk lending laws and regulations. This paperis divided into four parts:The first part is mainly to define the concept of private lending，privatelending in the analysis of foreign scholars and Chinese scholars about the folklending limits, and our country’s law on private lending rules, based on the law ofour country folk lending regulations defects, combined with the characteristics ofWen Zhou folk lending, puts forward the definition of folk loan. Analysis theforeign scholars about the private lending classification and Chinese scholars onthe definition of private lending, as well as, our country’s law on private lendingregulations. Finally, this paper is put forward the definition of private lending andconclude the legal characteristics of the private lending.The second part is to reveal the defects of ou’r countrys private lending inthe legal system. Our law is not science, because it’s not allowed private lendingbetween enterprises. Stirctly private lending interest rate makes the privatelending into underground trade. There is not clear regulation organizations andperfect supervision system. These are reflected in the lack of legal system, greatlylimits the healthy development of private lending. These are reflected the lack oflegal system and restricted the healthy development of private lending. Strictsupervision and management don’t make the private lending disappear, on thecountry intensified. However, it’s become an important force in the marketeconomy. The third part mainly combined the legal problems of our country folklending, learned foreign or other parts on private lending laws, targeted forreference. The paper was mainly referenced some developed countries andregions of the successful experience, such as American, Japan, Germany andTaiwan of china. Mainly in the legislative regulation, subject access, interest ratecontrol, regulatory measures were improved.The fourth part was mainly on the basis of absorbing foreign advancedexperience, to perfect our country folk lending laws and regulations. Privatelending should be adhering to the concept of market economy and the principle ofautonomy, insisting on the principle of moderate regulation to ensure the healthydevelopment of private lending. Uniform rules of private lending, it’s to set,change and abolish the original law. Relax the subject of folk loan and reform thefolk lending rate. In the aspect of supervision, we should set up the privatelending specialized management institutions, reduce the excessive governmentintervention and establish the private lending credit mechanism. In a word，weshould improve the legal system, enhance the legal coordination and guide theprivate lending regulating development.