Abstract: From the perspective of institutional genetics， the development of private lending in transparency in the financial system reform and open-up is a joint effort of corporate financing and other factors， which is attributed to a product of the markets rational evolution. For the crackdown and reform of financial monopoly， China should relieve， encourage， nurture and guide the incremental development of private finance under the premise of strengthening financial supervision， rather than by inhibiting and hindering the development of informal finance so as to maintain the monopoly interests of formal finance. In this process， laws should positively respond to the demands of legislation in the institutional development of informal finance， and relevant rules should be formulated in order to maintain the standardized development of private finance， and cultivate and strengthen its features to compete and develop with formal finance.

Key words: private lending, financial monopoly, financial open-up