The interest rate ceiling control has always been a predicament that puzzles the legislation and judiciary system in China and other countries.There is the infrequency of reversal between civil law system and common l...The interest rate ceiling control has always been a predicament that puzzles the legislation and judiciary system in China and other countries.There is the infrequency of reversal between civil law system and common law system:the former authorizes judges to subjectively determine whether the interest rate stipulated in the contract is suitable or not,but the latter has always relied on written legislation to set the interest rate ceiling.Religion and morality-based Anglo-American law interest rate ceiling control once broke down at the end of the 20th Century,but behavioral economics has re-founded a new justified basis for‘financial consumer protection’in the new century and led to legislation being changed.This historical change is quite similar to what happened in China,which can provide references for us.The interest rate ceiling legislation in China should take the financial consumer protection as its core goal,and separate the institutions on legislation and enforcement of interest rate regulations,then gradually form a different control system of business loan and consumption loan,give judges discretion on interest rate adjustment in case,fill in the gap between civil and criminal liability by independent forfeiture procedures.展开更多
文摘The interest rate ceiling control has always been a predicament that puzzles the legislation and judiciary system in China and other countries.There is the infrequency of reversal between civil law system and common law system:the former authorizes judges to subjectively determine whether the interest rate stipulated in the contract is suitable or not,but the latter has always relied on written legislation to set the interest rate ceiling.Religion and morality-based Anglo-American law interest rate ceiling control once broke down at the end of the 20th Century,but behavioral economics has re-founded a new justified basis for‘financial consumer protection’in the new century and led to legislation being changed.This historical change is quite similar to what happened in China,which can provide references for us.The interest rate ceiling legislation in China should take the financial consumer protection as its core goal,and separate the institutions on legislation and enforcement of interest rate regulations,then gradually form a different control system of business loan and consumption loan,give judges discretion on interest rate adjustment in case,fill in the gap between civil and criminal liability by independent forfeiture procedures.
