Private Lending Crisis Or Forced Lenders Ordinance Promulgated

People's Bank of China responsible person recently interviewed by the media said that private lending is formal.

However, it should be noted that the central bankers concerned only define private lending as "a useful and necessary supplement to the formal finance", but only acknowledge its legal compliance, and where the private finance will eventually go.

That is to say, whether it is to open up the financial market or to "standardize sunshine" and give it legal status, the premise must be to legislate for private lending.

Without a perfect law and supporting system, the "standardization and sunshine" of private lending is "flower in the mirror of the water".

Zhou Dewen, vice president of the association of small and medium enterprises in China, said recently that "this round of private lending crisis in Wenzhou has been stranded for many years and the" lender Ordinance "has been put on the agenda.

No doubt, the introduction of the lender Ordinance will become the first hurdle for the legalization of private lending.

In recent years, the news of the lenders Ordinance has been spreading like wildfire, but always "just listen to the stairs, but do not see people coming down".

In 2008, the Central Bank Research Bureau first proposed the study of the lenders Ordinance, and the lender Ordinance in 2009 was included in the 115 legislative items of the State Council.

But since then, in the 172 items of the legislative plan of the State Council in 2010, and the 159 items involved in the legislative plan of the State Council in 2011, the lender Ordinance has not been included.

The lender Ordinance has not been released for a long time. The reason for this is that in addition to the general provisions of loans, the lender is a financial institution approved by the banking regulatory authority of the State Council in People's Republic of China and has the qualification of operating loan business. There is a systematic obstacle to the spirit of the "lending business" that the eligible enterprises and individuals can initiate.

But the development of private lending to today seems to have been unable to wait for the regulatory department's pace.

According to relevant statistics, about 89% of the local households and 59% of the enterprises in Wenzhou are involved in private lending. The scale of the whole private lending market is 110 billion yuan.

The total credit volume of Wenzhou's banking institutions is currently about 400000000000 yuan, and private lending accounts for almost 1/4 of the total credit scale.

In connection with the tide of lending in Jiangsu, Fujian, Henan and Inner Mongolia, the lending of all the people is not in a state of mind. The sunshine and legalization of private lending is imminent.

To standardize and protect private lending and make it go out of the "grey area", it can not only reduce the financing costs of SMEs, but also distinguish the boundaries between private lending and illegal deposits of public deposits and illegal fund-raising, protect the interests of lenders, reduce the risk of blind investment, and achieve the orderly and orderly development of private credit.

When the relevant departments were unable to clarify the issues related to the lender Ordinance, the local authorities had taken the lead in protecting the rights of lenders.

Recently, according to relevant laws and regulations, the Chongqing Higher People's Court promulgated the guiding opinions on Several Issues concerning private lending disputes.

According to the guidance, the two sides agreed that interest rates should not exceed 4 times the same lending rate of the same period of the bank.

This provision is the first time in Chongqing, where compound interest is the exclusive right of financial institutions.

The "profit margin" is pushed to the front by the judiciary, which will protect the lenders' rights from the law.

Chongqing's conditional support for the "profit plus profits" is worthy of recognition, and it is a pragmatic move for the economic development of the judiciary.

But this is not enough. It needs the national level to give private lending a unified and standardized export through legislation.

It is noteworthy that in the position of the central bank's responsible person, we have stressed that the next step will be to promote relevant laws and regulations.

I hope that in the near future, financial reform will keep pace with the development of private lending, so that private lending of SMEs will usher in a new world.