The Reserch On Law System Of Our Small Loan Company

The small loan company, who meets the demand of our market, has been developed in China for more than ten years because of its loan flexibility, convenience and quick turnover; its financial support for peasants and small and medium-sized enterprises and its contribution to our peasants'economic status improvement as well as small and medium-sized enterprises'development. Guidelines on Small Loan Company issued by the People Bank of China and the Bank Supervision Committee in 2008 specified the regulations on the form of the company, ways to establish the company, main products and service, targeting group, supervision, disbandment and liquidation of small loan companies. Based on those aspects mentioned above, revelation has been obtained by comparison between the microfinance law system of China and that of Bosnia-Herzegovina, Ethiopia, Bolivia, Pakistan and Indonesia. In the thesis the flaws in China's microfinance loan system has been analyzed in order to establish a complete and target-specified microfinance loan law system.The thesis has been divided into five parts. The first part deals with the research, a general analysis on small loan company, on our small loan company system. The small loan company should be defined as a kind of non-banking financial institution offering loans according to government's regulation guidelines and market operation. The features of laws regarding microfinance loan have also been explained in this part and then the differences have been drawn from comparison between small loan companies and similar institutions such as commercial banks, financial companies and pawning houses. The second part is the theory and practice foundation of small loan company system: respectively analyzing small loan company system's economics basis and social practice basis from the jurisprudence and the philosophy of rights aspects. The third part brings up new ideas: comparison of small loan company system between China and five countries (Bosnia-Herzegovina, Ethiopia, Bolivia, Pakistan and Indonesia) that have typical microfinance loan laws targeting small loan institutions or have established relatively advanced laws regarding this scope. Firstly, the laws, rules and their structure of each country have been compared with each other. Then, it is the comparison of regulations and requirements on small loan institutions between those countries, the contents include requirements of capital, operation scope, prohibited commercial activities and limitation to a loan. In addition, a diagram has been made along with results obtained from comparing each country's supervision institutions and their responsibility. Furthermore, punishment and rectifying and reforming measures for violating supervision have been analyzed and compared. Finally, the revelation gained from foreign countries'small loan institution law system for our small loan company system's reference has been summarized from the comparison and analysis. The forth part is the practical exploration into our small loan company system, including the development course of our small loan company system, the flaws within the system, and matching those flaws with the analysis in thesis'third part to analyze the flaws in permission for establishing small loan company, in disbandment of small loan company and in the self-discipline system as to perfect our small loan company system. The last part is the reflections on how to perfect our small loan company system from the law's point of view. Suggestions on guidelines as well as detailed plans of developing our small loan company system have been made to improve and advance those laws.