[Keywords] Wenzhou usury, crisis, for example, to prevent their country, folk, financial, risk
(A potential credit risk and the risk of instability does not regulate private lending, risk, once the industry and credit risk, the safety of the borrowed funds by the great threat to disrupt the financial order to increase the community does not stabilizing factor.
(B) social risk social risks brought about by acts of private fund raising is divided into two, one is the investment in the groups line fraud actually in the name of money-making activities, one based on production and management for the purpose but the investment mistakes or market detrimental to the environment eventually led to difficult to repay the funds raised legitimate fund-raising activities.
(The three moral hazard. Owners of private lending in the capital can not effectively supervise the use of funds, as well as information asymmetry, high interest rate is apt to cause the borrower's moral hazard and adverse selection, disrupt the normal order of the financial markets.
(D) private financial potential risks of the subprime mortgage crisis.
In recent years, the rapid development of private financial industry, to broaden the financing channels for small and medium-sized enterprises, the People's Bank of China branch in Wenzhou city July 21, 2011, the Wenzhou private lending market report "shows Wenzhou private lending market size is 110 billion But we have to see that a lot of money from the government regulation of asymmetric information and transaction process is bound to bring great harm, specifically:
(A private financial, Once financiers default, the parties entered into the contract early pre purpose can not be achieved, the losses for both sides to reduce the efficiency of the transaction.
(Private financial markets, investment fraud actually the name of the line group money-making activities, often as bait sharks return false promises and fabricated profiteering operating items, blinded participants design industries cheated personnel, funding sources complex, easily lead to serious problems of group events and social stability.
(A lot of money out of the scope of government supervision, seriously disrupting the market, the government's macro-control is not implemented.
Second, private financial risks Cause Analysis
The private financial potential risk for many reasons, mainly the following reasons.
(A private lending, high interest rates to attract a lot of money blindly into, is the direct cause of the civil financial risks high interest rates is determined by two factors, First, China has implemented financial repression, interest rates are not market-oriented, plus credit tightening policy , which makes SMEs encounter difficulties in financing, forcing it to turn to the private financial markets, while private capital is in a state of shortage of funds, according to the relationship between supply and demand, the interest rate is higher than the interest rates in the capital market clearing.
(Two imperfections of the financial system, financial supervision and the lack of potential risk factors. Civil financial drifted outside the financial regulation of the market, currently, there is no relevant legal documents on civil financial regulators to regulate them, some malicious speculators The use of more than the law of interest rates as bait illegal fund-raising, increase the risk of private finance.Links to free papers Download Center http://eng.hi138.com
(Three private financial markets awareness of universal credit in the world in the process of economic development, more than the interests of Western and Oriental economic development and more emotional as the center, and some funding providers through private lending in Wenzhou borrowed funds to relatives and friends, and then high interest in extending loans to financial intermediaries or financing enterprise Most of the relatives and friends as emotional support, will not be too much of the economic evaluation of the repayment ability, credit awareness is not strong.
(D confusion of private financial institutions in the usury crisis, some guarantee companies, pawn shops, consignment line even small loan companies and other "underground banks". Initially, the approval of the guarantee company file is difficult to grant down With private lending demand the government to adjust the deregulation policy, most guarantee companies see opportunities sensational usury under the face of the temptation of high profits, just a few years in Wenzhou on the emergence of a large number of guarantee agencies.
To sum up, we can see that, to prevent private financial risk through the joint efforts of all parties concerned. Countries innovative financial institutions, private financial risks included in the scope of regulation of private financial institutions to improve their financial services innovation capability borrowing the principal should improve credit awareness, reduce social risk and default risk. financing companies to establish risk early warning mechanisms, innovative financial products, effective risk-averse, improve capital efficiency.
Civil financial risks - financial innovation
(SME financial product innovation
SME private financial market capital requirements, a core role in the financial risk prevention, it is to ensure that the important role of the private capital chain. For SME funding needs have dispersed a small number, frequency characteristics, private financial institutions establishment of industrial investment funds and venture capital funds, appropriate to increase the fund size guide private capital to multi-channel, multi-enter the industry in the form of investment funds and venture capital funds to support investments to small and medium-sized enterprises, to encourage industrial investment funds and venture capital funds.
Innovation (private financial institutions
Private financial intermediaries innovative means of credit support, based on the operating characteristics of SMEs, tailored to the new loans, for example, some enterprises have long payback period, its mortgage receivables amount, some small-scale enterprises , but a good reputation, you can implement small businesses bundled multi-family UNPROFOR, raising the loan guarantee.
(Three financial regulatory innovation
With the rapid development of private finance into the financial regulatory system is a general trend, the expansion of the scope of the financial regulatory will reduce the efficiency of supervision, but also the innovation of financial regulation financial supervision should be from the regulatory concept, the scope of regulation, supervision technology to innovate.
(Four financial system innovation
The >> << private lending management measures for implementation as soon as possible to develop clear liability for breach of contract and other aspects of the rights and obligations of both main body of private lending transactions, contract elements, to provide the necessary financial development for civil legal system environment.
 Han Qianni the context of financial innovation, financial regulatory status quo and countermeasures of modern commercial .2011 (26): 35.
 Guoli rural folk borrowings rendered active posture. Jilin the financial studies .2009 (8).Links to free papers Download Center http://eng.hi138.com