A Study On The Perfecting The Law System Of Micro-credit

As financial services provided for the poverty, low income and small enterprises, micro-credit has existed in China for nearly 30 years. It is its special nature of providing financial services for low-income groups that makes micro-credit play an import role in helping the disadvantaged groups out of poverty and become an integral part of the inclusive financial system. Today, the Central Government has decided to put micro-credit into The State Council Reform Plan, so as to give a vigorously support to the development of micro-credit. However, the legal system of micro-credit is not perfect and has many problems, such as unclear legal status of the main credit, discontinuous operation mechanism of interest rates and sources of funding, imperfect regulatory system, etc. which greatly restricts the development of micro-credit. In order to solve these problems, the author has done some study and research on this issue. Based on the studies of the legal system of some countries in which the micro-credit is developed, the author proposed some suggestions to perfect the domestic legal system of micro-credit in accordance with the conditions of China.This thesis can be divided into the following four parts:The first part mainly introduces the basic issues of micro-credit. First, the origin and development of micro-credit is introduced; and a brief description is given on its development history both in the world and in China, and the new features presented in the new era. Second, the concept, characteristics and classification of micro-credit is introduced. Finally, the importance of micro-credit in today's China is illustrated.The second part mainly introduces the status of the legal system of some countries in which micro-credit develops well. By the analysis of micro-credit legal system in Bangladesh, Indonesia and the United States, some inspiration on the legislation of China is drawn.The third part describes the status of the legal system and the problems about micro-credit. First of all, it describes the current policies and regulations of micro-credit in china. Secondly, it analyses some problems of micro-credit in its development process, such as unclear legal status of the main credit, lack of credit financing, over regulated interest rates, unclear target and unreasonable regulatory regime and so on.The fourth part gives some suggestion about perfecting the legal system of micro-credit in China. First, in the legislative model, the author recommends a unified legislative model. But it should not be too hasty. It can be promoted gradually by revising relevant laws first and then formulating and improving relevant laws and regulations. Second, as for the legislative principles, the author suggests four principles: Pratt & Whitney principle, sustainable development principle, appropriate regulatory principle and appropriate government involvement principle. Finally, according to the national conditions of China, the author gives some suggestions about the main system, operating system, regulatory system and so on.