Legislative Research On Private Lending In China

Private lending is a historical problem, which exists in our country for thousands of years.At the same time, it is not ignored that private lending is not only a worldwide problem in developed countries but also in developing countries. It is not merely a social phenomenon, but a legal phenomenon. Then It Is not the social problem but the legal problem. Some scholars also call private lending informal finance. It is because that private lending is taking placing among non-financial institutions. Private lending are the lending behaviors that Occur between natural persons, legal persons and other organizations. Private lending can be said to be a complement to the formal finance.In our country, it is an important component of the socialist financial market.We are facing a fact that the financing difficulty of small and medium-sized enterprises is a more and more difficult problem in our country ,even in the world.Generally speaking, banks prefer large scale, abundant funds of large enterprises. But it was lack of funds of small and medium sized enterprises has been rejected.This increases the survival space of the private lending.Private lending has the advantages of flexibility, low threshold and convenient transaction, and that can greatly increase the financing channels to provide financial support for small and medium enterprises.It not only fully activates the vitality of the market players, but also promotes the development of the financial market. On the other hand, it can also reverse the reform of the financial market, improving the existing incomplete financial system. However,the private lending has its inherent drawbacks, such as high risk, not standardized management and so on. These shortcomings can easily lead to regional crises, such as the city's warning of Shenmu and Odors .So, in order to guide the healthy development of private lending, we must undertake the source of the reasonable regulation. Then the premise is to make a special for private lending laws or regulations. The regulations on private lending can be meet the pace of economic and social development, in line with the logic of the development of society , so as to promote the development of the national economy.In line with the attitude of seeking truth from facts, this paper discusses the issue of private lending legislation. Although there are many forms of law on private lending,there exist the problems of inconsistency and in-coordination between the laws. So, in order to regulate private lending reasonably, we must first start from the legislation,formulating the special regulation of private lending laws or administrative regulations to give legal status of private lending so that we can really admit the position of the private lending in the private economy, and even in the whole national economy. On the whole the private can be reasonably guided to the path of healthy development. The healthy development of private lending can form the benign competition to the formal financial, which forced the financial system innovation, so as to continuously improve and perfect the financial system, injecting vitality into the development of the national economy, promoting the healthy operation of our national economy and social stability.