Research On Legal Problems Of Micro Credit Company

A micro credit company is a limited company which is established by natural persons, legal persons and other social organizations, and it does not absorb public deposits, but run small loan business instead. After the publication of guidance of small loan companies in May 2008, lots of private enterprises are being established all over. However, in the concrete practice of small loan companies, some problems were appearing gradually. The problems here mainly refer to: the nature of the problem, funding sources, risk control, monitoring subject and accountability issues. In order to obtain the sustainable development of micro credit companies, this article took both comparative and empirical methods to discuss and analysis these legal issues and find out the main problem. Therefore, to clarify the relevant legal issues and build a proper legal system has become the key to promoting a healthy and sustainable development.This paper is divided into four parts. The first part is a basic overview of micro-credit companies. This section introduces the concept, characteristics, development context of micro credit companies, and makes a comparative study of other financial institutions in order to highlight the importance of the development of micro-credit companies. The second part mainly concerns with the status quo of China's micro-credit companies and some existing problems. By analyzing the current situation and problems, it is found that the root causes of the problem are the nature of the positioning. The third part discussed the operation of foreign micro-credit institutions and the enlightenment to China with the aim to study the success and deficiencies of foreign microfinance, which we can absorb and make some use for our further development. The fourth part provided some legal advices to perfect the micro credit companies in china. That part is the main focus of the thesis. The authors re-positioned micro credit companies and put it into "non-bank financial institutions" with the hope to resolve the problems concerning source of funding and monitoring subjects, and thus help to put forward the corresponding countermeasures to other legal issues related.At present the legal status of micro-credit companies can be regarded as the bottleneck that hinders their development. And the shining point of this thesis is giving a proposal that we should restore the legal status of micro-loan companies during further development process and resolve the legal issues and perfect the corresponding law in order to protect the sustainable development of micro-loan companies.