Legal Issues Of Microfinance Institutions And Supervision

As a kind of finance innovation, microfinance has its origin in the experiences which the developing countries and the policy banks provide loans to the poor and microenterprises. In recent years, Chinese government takes great effort to develop the microfinance in China, and its function of alleviating poverty, supporting microenterprises and solving unemployment problems become more and more obvious. With the diversification of finance sources and the extension of institution scale, many problems about the supervision of microfinance institutions float out to the surface gradually. Because of the different risk characters between microfinance and traditional lending, how to fix microfinance a suitable position in law and execute effective supervision becomes an important subject worthy of studying.The author uses the methods of comparative analysis, substantial evidence analysis and comprehensive research to illustrate the microfinance supervision systems in other countries, combines the current situation of Chinese finance system and the development of microfinance in China, and then puts forward suggestions and proposals in setting up the system of supervision and law in China, making the law related to microfinance, and cultivating the diversified microfinance institutions. The author hopes to promote the development of microfinance in a healthy and stable way by establishing an appropriate system of supervision and law in China.