The Chaos Of Private Lending Is In Urgent Need Of National Legislative Supervision.

During the "eleven" long holiday period, many small and medium-sized enterprises in Wenzhou were worried about the capital chain crisis of private lending, and Wenzhou's huge private lending market has now implicated local households.

On October 4th, Premier Wen Jiabao of the State Council went to Wenzhou to investigate the development of small and medium-sized enterprises, and clearly put forward measures to increase the tolerance ratio of non-performing loans to small businesses and increase the support of financial and taxation policies to small and micro enterprises.

At this point, the "running road" and the "jumping" situation of Wenzhou's small and medium-sized enterprises have attracted the attention of senior officials for six months.

Why do private lending exist in large numbers?

On the one hand, due to the existing credit rules and mode of operation of state owned banks, the nature of state-owned enterprises and the government is

However, private lending, like a double-edged sword, can help enterprises to develop at the same time.

Because of the characteristics of private lending, such as paction concealment, lack of supervision, uncertain legal status and risk control, some even exist in the form of "underground banks", such as illegal fund-raising and money laundering.

Media reports said that the Wenzhou business owners who had "run" or even jumped from the capital chain broke up to 25 people since September.

The private lending capital moving outside the state-owned commercial banks is an unavoidable issue in the pformation of China's economic development.

From the current reality, we must first clarify the identity of private lending.

China's existing financial system has not been able to give private lending a clear identity and status, but failed to integrate it into a unified regulatory system.

Instead of allowing it to flow in a turbulent way, it is better to direct it into the category of unified financial supervision and conduct guidance and regulation.

Secondly, special supervision must be carried out.

Private lending is different from bank funds. There are significant differences in the way and method of supervision and management.

We must conduct special monitoring of private lending, collect relevant data of private lending activities regularly, and timely grasp the sources of changes in private lending, capital investment, interest rate and trading objects, so as to provide data support for relevant departments in formulating macroeconomic policies.

Finally, we should establish a standardized information disclosure system.

Private lending is usually carried out among friends and relatives. The borrowers and the borrowers are entirely based on credit, but the information about the overall size, whereabouts and operation of the loan funds is very opaque.

Therefore, it is necessary to require enterprises to disclose the financial status, the use of funds, and operational efficiency in accordance with the regulations, so that lenders can understand relevant information in time and improve investors.