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An Analysis Of The Legal Problems Of Micro - Credit Companies

Posted on:2015-08-14Degree:MasterType:Thesis
Country:ChinaCandidate:F Y WeiFull Text:PDF
GTID:2176330422473193Subject:Economic Law
Abstract/Summary:PDF Full Text Request
Involved in all aspects of the reform of the financial system, to have a profound impacton our economy and society, small loan companies as one important element to solve theproblem of financing of rural, urban low-income people and small micro-enterprise part ofthe group, is considered to be One of the effective ways of financing is an important part ofour country to build a multi-level financial system. Discussion of small loan companies since2005, China’s first microfinance company was founded continues to this day, difficultprocess of development of small loan companies encountered and the causes are hot andfocus. Nearly a decade of practice shows that fears of small loan companies and somebecome a reality, but there are new problems have emerged, how small loan companiessurvive? How to face challenges and threats? How to get development? These are the authorof this article needs to use the theory and practice of argumentation. Small loan companiesshowing the process of development of a long-standing good old problems, new issues newshow worth mentioning, is to explore the contents of this article. I expect the results ofprevious research and borrowing, standing on the shoulders of giants, analyzes the status quowith new data, ask questions, analyze problems, and ultimately solve the problem, forming auseful discussion for sustainable development of small loan companies.Introduction section of this article, the author describes the need for writing background,literature review made to collect data, to be taken in the framework of research methods andarticles of thinking and so on.The first part of the text, the author is foreshadowing part, aims to lay the foundation forlater expanded discussion questions that help to effectively solve the bottleneck problemsencountered by small loan companies in the development. Thus, in the first part of the paper,the author first concept of microcredit and microfinance companies, legal attributes acomprehensive understanding of the theoretical basis, then from a legal perspective on thedirection of development of small loan companies to study and discussion. Of course, therole of the sustainable development of small loan companies will also be discussed. In this section, the author also intends to foreign and domestic microfinance comparativeanalysis of the company’s development, in order to find the problem.The second part of the text is to discuss the legal issues of small loan companies exist.Our small loan company revealed many problems, both the inception of the old problems toworry about; of course, there are new questions unexpected, because of space limitations,only the author of which performance is more prominent, more focused discussion of issuesmentioned out to explore. One is on the small loan companies’ legal systems missing.Currently regulation of microfinance company laws and regulations, both laws, there areregulations; both local temporary regulations also place a trial requirement. For example, thebasic legal aspects, there is "People’s Republic of China Company Law","People’s Republicof China Contract Law", etc. Again regulations, mainly "on the small loan company pilotguidance." Resulting consequences is this: First, the level of economic development can notmeet the legal requirements around uneven. Second, the small loan companies regulated byspecial regulations, but also by the basic legal regulations, but in the legal system andregulations are low-order, law belongs to the high-order, and the law applicable to theapplicable law must be a priority. However, in practice, they do not. Third, small loancompanies and regulatory standards need to develop a unified management laws andregulations to regulate, but the current situation is for local municipalities and regulationsformulated by small loan companies require different, this will have on small Loan bringunpredictable future development troubles, the impact can not be ignored. The second is thequestion of how sustainable development of small loan companies, which is a key bottleneckin the development of their encounter. Although our country since the beginning of the pilotmicrofinance companies, small loan companies staggering pace of development, spread outacross the country, brought good news for SMEs financing to ease the contradiction betweensupply and demand of farmers and banks, to promote the social and economic development.But how sustainable development has become a problem to play a greater role inmicrofinance companies must face and resolve in a tough situation. The second part, otherlegal issues microfinance company revealed the contents of the section is discussed, withemphasis on private financing, small micro-enterprise finance related legal issues, civil litigation and private lending and illegal fund-raising and illegal deposits from the publicdiscussed.The third part of the body is the author of suggestions and strategies for improving therelevant legal system of small loan companies and sustainable solutions to developmentproblems raised by microfinance companies. In this section, small loan companiesreconstitution system issues and sustainable development of the legal system in question isthe focus of the author discussed. Small loan companies really play a role on the basis of thelaw is good, small loan companies to be healthy and sustainable development worthmentioning, the system of small loan companies legal system is the key. But for nowstandardized system of small loan companies, the law is incomplete, missing documents,leading to the law "broad-brush" and the chaos in sustainable development is bound tohinder small loan companies. Therefore, small loan companies to re-frame the legal system,not simply redundant construction, more than tinkering based on the original, must be clear,what is fundamental? Of course, the law. But the law’s scope and means of adjustment islimited, must also be complemented by regulatory documents. Such legal systemarchitecture is reasonable and feasible. Secondly, small loan companies for microfinancecompanies legal system itself is not enough to promote, facilitate efforts less constrainedefforts, a great potential to be counter-tied. This phenomenon will inevitably lead to a seriesof small loan companies encounter problems in development. But what is gratifying isChina’s development is not a small loan companies, such as the initial pilot is so empty, afterthe development of practice, today’s small loan companies comply both with their ownnotional conditional conditions and the actual practice can be used, but also has othercountries can learn from the successful experience in the small loan companies, all of whichare all marked us for the development of small loan companies should be encouraged,promoted and attitudes, how to make our country healthy and sustainable development ofsmall loan companies, for China make a greater contribution to economic development is thepurpose of this article.
Keywords/Search Tags:The petty loan company, Legal issues, Sustainable development
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