Research On The Business Risk Of Micro - Credit Companies In China

In 2005, in order to solve the SME and the "three rural" financing problem, People’s Bank of China, Shan Xi, Shan Xi, Si Chuan, Gui Zhou and Inner Mongolia, five provinces(regions) carried out a pilot micro-loan company, has set up seven small the amount of the loan companies. 2008, in order to further standardize the development of small loan companies, the CBRC and the People’s Bank jointly issued "Guidance on small loan company pilot" Since then, small loan company pilot rapidly across the country, has been extended the majority of the provinces, showing booming trend. By the end of 2014, China’s number of small loan companies has reached nearly 9000, the loan balance of nearly 1 trillion yuan, 122.8 billion yuan of new yuan loans. Development of small loan companies will help alleviate the "three rural" and SME financing problem, help to explore the development of an effective model of private finance will help meet the needs of rural finance, activate the rural financial market will help to break the bank in the credit markets monopoly, will help promote the development and growth of the national economy.However, after all micro-loan company set up not long, is still in the exploratory stage, behind its booming, problems and constraints they face are gradually emerging business risks also continue to accumulate. Therefore, this paper will examine the company’s micro-credit system constraints and risks exist. On the one hand, focuses on the country’s small loan companies face institutional constraints and operating environment, from a macro perspective and analysis of institutional constraints on the development of the company’s business environment obstacles, including "loan does not exist only" requirement to make small loans Company subsequent lack of funds, the tax burden is too heavy, compressed margins, improper supervision, so that a loss of small loan companies, rural banks restructuring difficulties, the future is uncertain, self-constraint, it is difficult docking credit system. Interest rate restrictions lead to a lack of flexibility in pricing. Meanwhile, from a market perspective, the analysis of market competition faced by micro-loan companies to make bedding for the following policy recommendations. On the other hand, small loan companies operating in the most critical issue is the risk prevention and control, the quality of risk prevention and control is directly related to micro-loan company and development of the company’s survival. This paper also focuses on the credit risk, operational risk, liquidity risk and market risk point of view of the four main risks faced by micro-loan company, explained the reasons for the different types of risk generated.In response to these problems, we learn from the experience of foreign credit institutions on the basis of the success of micro-loan company, from the macro and micro levels gives the corresponding solutions and policy recommendations, both proposed measures to optimize the external business environment, such as determining the micro the status of financial institutions, loan companies, Cancel "only loan does not exist," the limit, reduce taxes and increase support for small loan companies, etc., but also to improve the internal management of micro-credit company measures, such as establishing a rational and efficient The corporate governance structure, improve the quality level of company personnel, to build rigorous risk management system, improve the innovation ability of credit products.The main contents of this paper is divided into seven parts: The first chapter is an introduction, an overview of the main research background and significance of this paper, research, innovation and research methods and articles of deficiencies; The second chapter is a literature review, the main For small loan company business model, sustainable development, risk and risk management of research results and relevant literature review; The third chapter is theoretical research related to small loan companies, mainly financial repression theory asymmetric information theory, theory of credit rationing and risk covariant theory; The fourth chapter analyzes the status quo of small loan companies, mainly from the development of the situation, in the face of institutional constraints and the business environment in which to analyze the three angles; The fifth chapter is the risk and its causes small loan companies face, mainly on the credit risk, the reasons for the operation risk, market risk and liquidity risk and the resulting four risk types; Chapter VI for micro-finance status of the company, drawing on the successful experience of foreign MFIs, propose appropriate suggestions from both macro and micro perspectives; Chapter VII is the conclusion of this article.