Lower the upper limit of private lending interest rate protection? Experts say interest rate regulation needs to be cautious

category:Finance
 Lower the upper limit of private lending interest rate protection? Experts say interest rate regulation needs to be cautious


According to the relevant provisions of the supreme law of August 2015, if the interest rate agreed by both parties of private lending does not exceed 24% of the annual interest rate, the peoples court shall support it if the lender requests the borrower to pay interest according to the agreed interest rate; if the interest rate agreed by both parties exceeds 36% of the annual interest rate, the interest agreement on the excess part is invalid.

Interestingly, many years ago, many people suggested moderately liberalizing interest rates and promoting the legalization of private lending, mainly based on the interest rates agreed by both sides.

In response to the reduction of the upper limit of private lending interest rate protection, Zheng Xuelin said that it is of positive significance and the most effective solution to ease the financing difficulties and high financing costs of enterprises and prevent routine loans and false loans from the source.

If we really lower the upper limit of private lending interest rate protection as stated in the supreme law, it will undoubtedly be a drastic blow to the private lending industry.

Prudent interest rate control

On this point, many experts expressed their views. To sum up, it is impossible to solve the problem only by suppressing and encircling private finance, which requires conscious guidance and guidance.

Private lending has developed for many years in China, and its background is to better implement the inclusive financial policy to meet the financing needs of those relatively vulnerable groups and high-risk customers. Once the loan interest rate is intervened, the small and micro enterprises and individuals mainly relying on private lending may have more difficulties in obtaining funds, and the problems of difficult and expensive financing have not been solved.

Dong ximiao, chief researcher of Zhongguancun Internet Finance Research Institute, told our reporter, we can appropriately restrict the interest rate of private lending, but if we use planning means and legal means to interfere with the financial operation law, and forcibly break the principles of risk pricing and income and risk matching , the effect may be counterproductive.

Restricting the interest rate of private lending will destroy the sunshine work of private lending promoted by many academic circles in the industry, and gradually transfer the originally sunny private lending to the ground, which will lead to more serious consequences.

In his opinion, we often emphasize the marketization of interest rates in the financial market, which is essentially the price of funds and should be determined by the market rather than strictly controlled. This is not in line with economic laws.

Compared with the regulation of interest rate, it should be guided consciously. Dong ximiao said that instead of strictly managing private lending rates, it is better to guide private capital and promote private capital to better serve the real economy.

Ji Shaofeng, a well-known commentator on Internet Finance and a financial columnist, believes that if the interest rate level is excessively restricted, it is easy to make the social vulnerable groups and high-risk customers unable to obtain loans. Using annualized interest rates across the board will easily make vulnerable groups victims of Inclusive Finance.

In this way, it runs counter to the original idea of regulation.

From the perspective of private lending, Ji Shaofeng said that the result of greatly reducing the legal interest rate ceiling of private lending is basically equivalent to eliminating private lending on a large scale. Especially in the current capital costs, management costs, risk costs did not decline significantly, significantly lower the legal interest rate ceiling, in essence, will force the legal interest rate cap credit market to disappear directly.

He suggested that when the supply of credit organizations in Chinas banking industry lags behind the financing demand of small and medium-sized enterprises, it is more significant to moderately liberalize interest rate control and guide small and micro financial organizations to meet the financing needs of private economy and vulnerable groups. It can partially achieve the goal of rectifying Chinas unbalanced dual financial system.

Interest rate is not the focus of contradiction. Limiting interest rate is a double-edged sword. We must be cautious.

Ji Shaofeng said that there is no standard for high interest rates, but as long as the two sides agree in a completely fair and just environment and get payment back through legal channels after loan, this behavior fully conforms to the law of interest rate marketization.

Zhang Huaqiao, chairman of slow bull capital, almost expressed the same view. He believes that the lower the interest rate ceiling, the better. Now 24% and 36% are appropriate. A reduction of 2-3 percentage points is also acceptable.

After years of development, private finance has helped small and medium-sized enterprises and individual users to obtain financing, but also caused a series of problems. In many cases, the high interest rate is due to the higher risk cost and investment efficiency cost of private lending. Only in this way can private lending companies survive.

At present, Chinas financial system is not perfect, commercial banks and other financial institutions can not fully undertake this business. Although rural banks, private banks and other small and medium-sized banks are gradually established, their service capacity is limited and they can not meet the financing needs of small and medium-sized enterprises and individuals. Therefore, private lending will not disappear for a while.

Existence is value. Dong ximiao believes that the interest rate of private lending is obviously higher than that of financial institutions, but some small and medium-sized enterprises and individuals have no way, ability or even impossible to obtain financing from financial institutions, and private lending can meet these financing needs.

Dong ximiao bluntly said that if the private lending interest rate is reduced, some borrowers will think that the interest rate of the borrowed platform is too high, and the higher part may not be willing to repay, which is not conducive to protecting the legitimate rights and interests of the lending platform. The high capital cost and high customer acquisition cost will also affect the new business of the lending platform. This is too idealistic, out of touch with reality.

In particular, the head of the financial technology giants are doing loan assistance business, the business itself does not lend. However, due to the stigmatization of Internet Finance in recent years, many users regard some mutual fund platforms as private loans. The reduction of the upper limit of interest rate protection for private lending is bound to have a certain impact on it. As for whether the maximum interest rate in the loan law is applicable.

There should be a line between what the government does and what it doesnt do, an industry official told our reporter. The multi-level financial demand has always existed. Suppressing the demand can only lead to social injustice, and people can not enjoy financial services equally, thus more underground transactions will appear. What the government should do is to create a clear and orderly market environment, vigorously build a credit reporting system and a simple judicial procedure for microfinance, crack down on dishonest and malicious debt evaders, increase the bad debt cost of Laolai, and change the cost logic of good people subsidizing bad guys. A devil is a foot tall. As for the phenomenon of routine loans and false loans in the industry, they dont care about the so-called red line. The people who exploit the loopholes are always there. In the financial lending industry, Lao Lai is in vogue. Especially during the epidemic period, a large number of debt evasion and cancellation broke out, and some people indicated that they would not pay their debts. Therefore, it is necessary to educate borrowers and accelerate the implementation of personal bankruptcy system to raise the cost of bad debts. Source: China Times editor in charge: Li Zhaoyuan_ B7890

There should be a line between what the government does and what it doesnt do, an industry official told our reporter. The multi-level financial demand has always existed. Suppressing the demand can only lead to social injustice, and people can not enjoy financial services equally, thus more underground transactions will appear. What the government should do is to create a clear and orderly market environment, vigorously build a credit reporting system and a simple judicial procedure for microfinance, crack down on dishonest and malicious debt evaders, increase the bad debt cost of Laolai, and change the cost logic of good people subsidizing bad guys.

A devil is a foot tall. As for the phenomenon of routine loans and false loans in the industry, they dont care about the so-called red line. The people who exploit the loopholes are always there. In the financial lending industry, Lao Lai is in vogue. Especially during the epidemic period, a large number of debt evasion and cancellation broke out, and some people indicated that they would not pay their debts. Therefore, it is necessary to educate borrowers and accelerate the implementation of personal bankruptcy system to raise the cost of bad debts.