Research On The Legal Countermeasures Of Promoting Private Capital Investment In Local Financial Institutions

In recent years, private capital investment policy has gradually relaxed in China, so that private capital has more investment ways.But there are some obstructions that make private capital invest in local financial institutions difficult as an objective reality.It is practical necessity and urgency that how to effectively promote private capital investment benignly, revitalize the local economy and seek a new way of development through the developing and improving legal norms.Article introduction comes from research background and points out why private capital investment in local financial institutions has become a hot issue. When the concept is difined, firstly elaborated the achievements of each school is elaborated, and ultimately the concept is defined. Then the motives of private capital investment in local financial institutions are analyzed. Private capital investment in local financial institutions helps to solve the financing difficulties of semity, promote private capital investment normalization, as well as strengthen competitiveness of local financial institutions, optimize industrial structure and other aspects. The significance of private capital investment in local financial institutions is pointed out.In third chapter private capital investment in local financial institutions is described,the causes of two block factors:Risk Factors and System Bottleneck are analyzed. Risk factors contain moral hazard, the risk associated with the loan, the marriage risk of industrial capital and financial capital. In the system bottlenecks,it is analyzed that the legal system at this stage is limited to private capital investment of local financial institutions. Finally, from the perfection of the legal system of private capital investment in local financial institutions and strengthen the supervision of the two aspects put. Investment in local financial institutions of the legal system put forward to perfect the relevant laws and regulations and increase investment preferential finance fiscal policy.In strengthening supervision, to strengthen the private capital access regulation, local financial institutions operating supervision and local financial institutions, self regulatory. In the aspect of system bottleneck, the limitation of the local financial institution of the private capital investment in the present stage of our country's legal system is analyzed.Specific measures include:strict supervision of private capital investment situation, the strict prohibition of the related party transactions, the regular disclosure of information in order to intervene in social supervision.Also, this paper combines economics, sociology etc. variety of subject knowledge, in order to from the multiple perspectives analysis to promote the problems existed in the legal system of the private capital investment in the local financial institutions, and from more than one way to explore the issue of the countermeasures to solve.