Small Loan Company Legal Issues

Most countries around the world value the development of micro-credit highly and have taken different legal measures to regulate and to promote micro-credit, forming models of various characteristics. Such models differs form each other in supervisors, measures of evaluating risks, fund resources, operation regions and legal status, providing good samples and references for researches on micro-credit. The micro-credit corporation is a legal subject of Chinese characteristics and is designed on the basis of Chinese financial demands for micro-credit. Upon the aforesaid legal subject, the entire legal institution form for the operation of micro-credit is constructed by combining existing legal system. This thesis is attempted to explore deeply the micro-credit corporation legal system and to achieve the purpose of improving the legal system by comparing problems encountered in Chinese practices.This thesis falls into four parts and the first part is a general introduction of micro-credit legal system. The first part defines the concept and development objective and introduces briefly the development of micro-credit within international scope. This part also analyzes the legal character and primary legal nexus of the micro-credit corporations.The second part introduces institution circumstances of abroad countries and regions whose micro-credit systems are comparatively mature and is mainly concerned with two aspects:the source of fund and the supervising models. Based on geographical distribution, the legal systems of the aforesaid countries and regions are elaborated respectively in accordance with practice in Asia and practices in Latin America. The sources of fund and supervision model are generalized accordingly.The third part introduces the inchoation and development of micro-credit in China. The significance in Chinese economic and social development and current problems existing are pointed out in this part. Relative legal systems are sorted out and two regulative files for the supervision authority's regulation on micro-credit corporations are observed in detail in this part.The forth part puts forward suggestions for the improvement of micro-credit legal system. The proposed suggestions consist of four aspects:the clarification of the legal character, the improvement of supervision system and the expansion of capital channels and operation regions. Such suggestions are proposed in an attempt to improve continuously the Chinese legal system to satisfy the practical demands of micro-credit and to wipe off system barrier, which is to make the new legal subject—micro-credit corporations contribute better to the Chinese new countryside construction and the reform of small and medium enterprises.