On Legal Problems Of Micro-loan Company

As a kind of institutionalized financial innovation, the micro-credit company is developed after summing up the lessons of the poor micro-credit and micro-enterprise loans. It has been set up only three years in china, but the size of its development has become that "A single spark can start a prairie fire." In particular, after "the guidance of micro-loan company " issued in May,2008, the micro-loan company is warmly welcomed by private enterprises. Around the micro-credit company licenses, it has started a incentive competitive. However, due to the system of micro-loan company still in trying stage, the basic regulations of micro-loan company are not provided or unreasonable. The lack of the legal system becoming the bottleneck restricts the micro-loan company development. Clarifying the relevant legal issues and building a proper legal system become the key to promote their health development.In this paper, it has demonstrated the law problem of micro-loan company by the methods of comparative analysis, empirical analysis, economic analysis and comprehensive study. In combination with the actual situation of China's financial system and the development status of micro-credit company, the paper takes the ideas and proposals of the legal framework of Chinese micro-loan company from the company's legal position, supervisory, regional restrictions and credit loans. The expectation is to promote the micro-loan company steady development through the establishment of a sound legal system.This article is divided into third parts. The first part, the legal system overview of micro-credit company, it introduces that the micro-loan company is developed from international micro-credit activities. It sums up that the States clear rules mostly in the form of laws in order to regulate and promote the development of micro-credit. Then it demonstrates that to establish the micro-loan company legal system is important for Chinese economic development. It is clearly institutionalized that the micro-loan company is part of the financial system, which enriches the financial ecology, alleviates the problem of finance of small and medium enterprises and greatly strengthens the confidence of investors.The second part, the legal issues that exist in the development of micro-loan company, it points out that the problems of the micro-loan company are mainly policy-oriented and lack of legal norms from legal system. Then they are followed by an analysis of the specific legal issues in micro-loan company. The micro-loan company engaged in Renminbi business is positioned as common business rather than financial institution, which not only leads toregulatory confusion but also seriously hinders the company's self-development.The third part, recommendations and countermeasures about improving the micro-loan company legal system, this section is the focus in the full paper, which shows the author's point of view. First of all, it clears that the guiding ideology of the micro-loan company legislative system is the scientific concept of development, the development of commercialization, based in rural areas and endogeneity of the establishment of the financial system. Then it makes arrangement for the micro-loan company legal system, which means amending the "micro-loan company guidance" temporarily, improving the legal system of micro-loan company gradually and legislating "micro-credit act" in the proper time. It sets up a special section about micro-loan company in the "micro-credit act". Then it makes recommendations to the urgent legal need of micro-loan company, such as positioning it as a non-banking financial institutions, determining the Banking Regulatory Commission as its authority, relaxation of geographical restrictions and formulating credit loan. The last suggestion is to establish and improve the micro-loan company trade associations system.