A Study on the Problems and Countermeasures of Legal Regulation of Private Lending

Research Article
Open access

A Study on the Problems and Countermeasures of Legal Regulation of Private Lending

Zhizhao Niu 1*
  • 1 Zhengzhou Technology and Business University    
  • *corresponding author 935317927@qq.com
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/26/20230566
AEMPS Vol.26
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-95-9
ISBN (Online): 978-1-915371-96-6

Abstract

Private lending is widespread in China, and as a useful and necessary complement to formal finance, it is becoming increasingly important in the country's economic development process. The activity of private lending is in line with the profit-seeking nature of market players, enabling the effective use of a large amount of idle social capital, and temporarily alleviating the contradiction between the high lending threshold of formal financial institutions and the lack of timely satisfaction of the capital needs of small and medium-sized enterprises, which has contributed to the development of diversified financing methods. However, while playing its irreplaceable role, the overheated private lending market may also leave a series of sequelae to China's immature social and economic structure at any time, including the lack of supervision and management mechanisms, insufficient regulation of intermediaries, the risk of disputes and the impact on financial institutions. This paper presents a comprehensive analysis of the legal regulation dilemma of private lending in China, and discusses the path of private lending regulation from the levels of special legislation, perfecting supporting systems, and prudently handling related disputes, in order to achieve the early realization of sunlight, standardization and legalization of private lending.

Keywords:

private lending, law dilemma, regulatory path

Niu,Z. (2023). A Study on the Problems and Countermeasures of Legal Regulation of Private Lending. Advances in Economics, Management and Political Sciences,26,168-174.
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References

[1]. Nurbanu. On the legal protection and improvement of private lending in China [J]. Western Journal, 2020(01): 63-65.

[2]. Xu Xiangning. The development status and legal regulation of private lending [J]. Financial Economics,2019(14):8-10.

[3]. Hu Juan. Legal regulation of private lending interest rates in China [J]. Guangxi Quality Supervision Herald,2019(05):255.

[4]. Zhou Jie. The regulation of private lending in major countries and regions of the world[J]. China Trial,2015(16):42-43.

[5]. Wang Jianwen. On the civil and commercial distinction in the legal application of private lending contracts in China [J]. Modern Jurisprudence,2020(01):132-142.

[6]. Li Youxing; Pan Zheng. Research on the judicial problems and countermeasures related to "lending"[J]. Legal Application,2019(21):44-54.

[7]. Lan Shou Rong. Adverse selection and judicial response to false lawsuits of civil lending [J]. Political Law Series,2019(01):78-90.

[8]. Liu Yong. The offsetting of excess interest - taking "private lending" as the object [J]. Legal Science (Journal of Northwest University of Political Science and Law), 2019(02): 170-179.

[9]. Yue Caishen. The transformation of the governance of the risk of private lending and the innovation of legal mechanism [J]. Political Law Series,2018(01):3-13.

[10]. Li Xuehui. The treatment of over-the-limit interest in civil lending [J]. Journal of Law,2017(12):126-132.

[11]. Yan Yu; Yi-Tsung Lee; Robert C.W. Fok.The determinants of high-interest entrusted loans in China[J]. Business Finance & Accounting, 2020.

[12]. Franklin Allen,Yiming Qian,Guoqian Tu,Frank Yu.Entrusted loans: a close look at China's shadow banking system[J].Journal of Financial Economics,2019.

[13]. Xuelian Li,Jyh-Horng Lin.Shadow-banking entrusted loan management, deposit insurance premium,and capital regulation[J].International Review of Economics and Finance,2015.

Cite this article

Niu,Z. (2023). A Study on the Problems and Countermeasures of Legal Regulation of Private Lending. Advances in Economics, Management and Political Sciences,26,168-174.

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About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

ISBN：978-1-915371-95-9(Print) / 978-1-915371-96-6(Online)
Editor：Javier Cifuentes-Faura, Canh Thien Dang
Conference website: https://2023.icmred.org/
Conference date: 28 April 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.26
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Nurbanu. On the legal protection and improvement of private lending in China [J]. Western Journal, 2020(01): 63-65.

[2]. Xu Xiangning. The development status and legal regulation of private lending [J]. Financial Economics,2019(14):8-10.

[3]. Hu Juan. Legal regulation of private lending interest rates in China [J]. Guangxi Quality Supervision Herald,2019(05):255.

[4]. Zhou Jie. The regulation of private lending in major countries and regions of the world[J]. China Trial,2015(16):42-43.

[5]. Wang Jianwen. On the civil and commercial distinction in the legal application of private lending contracts in China [J]. Modern Jurisprudence,2020(01):132-142.

[6]. Li Youxing; Pan Zheng. Research on the judicial problems and countermeasures related to "lending"[J]. Legal Application,2019(21):44-54.

[7]. Lan Shou Rong. Adverse selection and judicial response to false lawsuits of civil lending [J]. Political Law Series,2019(01):78-90.

[8]. Liu Yong. The offsetting of excess interest - taking "private lending" as the object [J]. Legal Science (Journal of Northwest University of Political Science and Law), 2019(02): 170-179.

[9]. Yue Caishen. The transformation of the governance of the risk of private lending and the innovation of legal mechanism [J]. Political Law Series,2018(01):3-13.

[10]. Li Xuehui. The treatment of over-the-limit interest in civil lending [J]. Journal of Law,2017(12):126-132.

[11]. Yan Yu; Yi-Tsung Lee; Robert C.W. Fok.The determinants of high-interest entrusted loans in China[J]. Business Finance & Accounting, 2020.

[12]. Franklin Allen,Yiming Qian,Guoqian Tu,Frank Yu.Entrusted loans: a close look at China's shadow banking system[J].Journal of Financial Economics,2019.

[13]. Xuelian Li,Jyh-Horng Lin.Shadow-banking entrusted loan management, deposit insurance premium,and capital regulation[J].International Review of Economics and Finance,2015.

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