Loan Market And The Regulation In The Context Of Globalization

Lending is part of everyday life, and this is why it must be supported by the deciding factors, but not under any terms. We can hardly imagine an economy that does not include the lending activity in its mechanisms. Lending is a fundamental element for the fluidization of monetary circuits, but its effects are not always positive. From this point of view, the present analysis tries to highlight a number of issues underlying the functioning of modern economies, issues that have harmful effects on the general welfare. Along with the recent economic crisis, economists’ debates on the culprits were amplified, increasingly discussing about its real causes, the modernization developments always confronting us with new paradigms, including that of the regulation of the modern banking system. Starting initially as a means of temporary redistribution of available resources lending also acquired slavery accents as it is sometimes promoted among final consumers, the interest of banking institutions being just the growth of banking performances and therefore of the bank profit. We do not dispute its necessity, especially in times when the amount of currency on the market is much lower, but we cannot but agree with the excesses that financial institutions register in the creditor - debtor relation by means of unfair terms, interest rates sometimes exorbitant and recovery policies which lie at the limit of legality. All these practices unfortunately are ignored by those who should oversee the credit market. People speak of deregulation or over-regulation. We believe that the regulations are welcome, but only when they protect all parties involved, not just certain interests. A market of this kind, involving substantial financial gain is a market that attracts such excesses. The role of the regulators must be precisely to ensure that such agreements are concluded and take place in humane, fair and lawful conditions for all those involved.The experiences of recent years show that regulators have responded to the financial market abuses just after they exploded. It is important for the supervision to prevent and drain everything that is harmful.