Study On The Market Basis And Norm Path Of The Development Of Private Lending

Since 1978 China has been Reform and Opening,the scale of China's capital market has expanded rapidly,at the same time,the private lending market has been growing and active transactions are on the market.Along with this process,emerging issues such as Wenzhou frequently outbreak private loan default in 2011,private lending market has been questioned by all stakeholders.However,facts have proven that the development of private lending has a greater market demand.The private lending market of our country evolves and develops gradually under the certain market economy environment.In view of this,this paper theoretically discusses the market basis of the development of private lending and analyzes the market basis of the development of private lending under the market environment of our country.We have selected the Wenzhou for our case study.According to the credit information of the most important borrowers in the private lending market,questionnaire,data acquisition,and with the help of empirical analysis to explore the credit basis of Wenzhou private lending market.These studies has carried out based on the analysis of the causes of the constantly outbreak of Wenzhou private loan default.This paper probes into the problems existing in private lending,and puts forward the normative path for the development of private lending.On the one hand,this paper explains that the development of private lending has a great market demand,on the other hand,it provides a way of thinking for the government to implement the policy of stabilizing and standardizing the development of private lending market.In this paper,the qualitative and quantitative,empirical and case studies are used to systematically analyze the market basis and normative path of the development of private lending.The main contents of the study include:firstly,to explore the market basis for the development of private lending.First,based on McKinnon-Shaw's model of financial repression,it clarifies the theoretical connotation of financial repression,and demonstrates that private lending is an inevitable derivative of financial market under the policy of financial repression;second,it focuses on the analysis of the binding effect of credit mechanism on private lending.Borrowers are more willing to perform contracts in repeated lending,so the market will develop stably.Third,the information cost of lenders under asymmetric information environment is discussed through game modeling.Secondly,in view of the representative of Wenzhou private lending market,this paper takes Wenzhou as an example,on the basis of a brief analysis of the basic situation of the development of Wenzhou private lending market,through the collection of information data of lenders.Empirical analysis of the credit information of borrowers in private lending to verify the credit basis in private lending.From the angle of the change of government economic policy and the restraint mechanism of private lending market,this paper analyzes the causes of the constantly outbreak of non-government loan default in Wenzhou,and in view of the problems existing in the private lending market,this paper puts forward the path of standardizing the development of private lending market.That is,to build a multi-level supervision system of private lending;to strengthen the legislative work and law enforcement of private lending;to establish a social credit system,to develop intermediary organizations of advisory services;to develop new financial institutions;to form a multi-level credit market;We will further develop cooperation with formal financial institutions and optimize the structure of private investment and so on.Based on theoretical and empirical studies,this paper draws the following conclusions:(1)The development of private lending has a great demand from the market;(2)Credit mechanism still plays an important role in the private lending market;(3)The government should maintain the stability of economic policy;(4)The private lending market is continuously became mature and perfect;(5)Further requests on standardizing the development of private lending market and support of corresponding government policies.