Study Of Small Loan Companies Standard Development In China

In recent years, micro-credit is becoming a powerful weapon to deal with the problem of asymmetric information in rural financial markets for poor people in developing countries as a financial innovation. Microcredit is not only an innovation of traditional credit, but also solves the financing bottleneck problem of the socially vulnerable groups, reducing the financing threshold of the vulnerable groups. From2005to2008the country began to promote small loan company from less to more, at the end of December2011, there were4282small loan companies, loan balance of3915billion yuan, annual total new loans of193.5billion yuan. Small loan companies are playing a role in the field of finance, but hidden behind this crazy growth figures, there is the small loans industry and even the country’s financial risk. Therefore, there is a real practical reality to embark on the development of small loan companies standardize research for us.Domestic traditional micro-credit is often biased towards the analysis of the basic principles of microfinance and social significance. Abundant researches stay in the initial stage of strengthening government support to turn micro-credit to private banks. This paper focuses on the study of small loan companies credit model, and analyze it as a new financial service model. From an innovation point of view, paper clarifies important concepts and principles in the development of microfinance. Firstly, the system analysis method and the small loan companies reason, grasping of the latest situation of the small loan companies accurately, and analysis on similar micro-credit institution in the market; Secondly, we analyze comparatively on the small loan companies and underground banks, the micro-credit institution abroad. It points out the existing problems in Chinese small loan companies and analyzes this problem by the data and charts.Through analysis and comparison, the current small loan companies in China faces five major problems, firstly, any micro-credit inevitable plight of Economics; Secondly, funding source of micro-credit and sustainable development; Thirdly, lending interest rates of small loan companies; Fourthly, the internal management of small loan companies; Fifthly, small loan companies face the constraints of the policy environment. The source of these problems may be the development of small loan company lack of adequate funding sources, the lack of a perfect legal framework and regulatory system, no suitable market-oriented interest rate, difficult risk control before and after the loan, good external financial environment of development.According to the above problems and the reasons, this paper presents six-point measures. Firstly, it guides small loan companies orderly from government supervision; Secondly, the government should clear the legal status of small loan companies to make them enjoy the real treatment of the financial organization; Thirdly, it needs to broaden the financing channels for small loan companies, expanding the financing proportion of small loan companies and the size of the capital, simplifying financing procedures of small loan companies; Fourthly, it increases support for small loan companies and give appropriate support in tax breaks and financial subsidies, in order to reduce operational costs and improve profitability; Fifthly, it strengthens the standard operation and establish the loan risk compensation mechanism; Sixth, it improves the professional quality of the loan officer, to cultivate their professionalism and hard work style.