Illegal fund lending mainly refers to some financial institutions violating financial regulations, violating the purpose of inter-bank lending to adjust fund surplus and make up for short positions, using fund lending channels to evade credit scale control and management, and transfer credit funds in large quantities To speculate in real estate, stocks, set up companies, or use local fiscal expenditures to build development zones, launch new projects, expand the scale of fixed asset investment, turn short-term funds into long-term funds, extend the period of borrowing funds, etc.

Legal Analysis

Fund lending is a kind of temporary adjustment lending business, which refers to the credit activities of banks or other financial institutions to mutually adjust position funds during the operation process. Fund lending in my country mainly involves inter-bank lending business among financial institutions. This kind of lending activity often requires stocks, bonds, etc. as security, and must be repaid the next day after receiving notice from the lender. If the borrower cannot repay on time, the lender has the right to dispose of the collateral. Lending is a financial business, so companies that are not financial institutions are not allowed to lend to each other. Lending activities between enterprises will not only fail to prosper my country's market economy, but will disrupt the normal financial order, interfere with the implementation of national credit policies and plans, weaken the state's monitoring of investment scale, and cause economic disorder. Therefore, the so-called loan contract (or loan contract) entered into between enterprises violates national laws and policies and should be deemed invalid. Inter-enterprise lending can be legal as long as it does not violate the relevant regulations on enterprise lending.

Legal Basis

"General Rules for Loans"

Article 21 The lender must be approved by the People's Bank of China to operate the loan business and hold a loan issued by the People's Bank of China "Financial Institution Legal Person License" or "Financial Institution Business License", and be approved and registered by the industrial and commercial administration department.

Article 61: Administrative departments at all levels and enterprises and institutions, supply and marketing cooperatives and other cooperative economic organizations, rural cooperative foundations and other foundations are not allowed to operate financial businesses such as deposits and loans. Enterprises are not allowed to handle loans or disguised loan and financing business in violation of state regulations.