Research On The Legal And Regulatory System Of Microfinance Companies In China

From the establishment of seven pilot microfinance companies in 2005,to 2008,China Banking Regulatory Commission and People's Bank of China jointly issued a"Guidance on pilot microfinance companies"which was aimed to promote vigorous development of microfinance companies and leading to the formation of large scale nowadays,it shows that microfinance companies in China has gradually gained recognition of the society,at the same time, its establishment plays a very important role in alleviating financial difficulties of medium-sized and small enterprises,animating regional economic and prospering financial market. Moreover, as rising financial organizations, the development of microfinance companies has a significant impact on the stability and security of Chinese financial market. The normal and orderly development of microfinance companies can not do without effective regulation which is an inseparable part of a sound legal regulatory framework. At present, domestic regulations of microfinance companies are still in the chaotic state,"Guidance on pilot microfinance companies"lacks of authority and huge differences of self-published normative documents between provinces make things even worse. Facing to this society environment where opportunities and challenges coexist, we still have a lot of work to do to figure out how to conduct legal supervision and achieve the goal of promoting the healthy development of microfinance companies and preserving our financial stability.In this article, research methods of law and economic analysis, empirical analysis and comparative analysis are considerably implied. Moreover,I divided my interpretation into four parts to shed a light on the legal regulatory issues of microfinance companies.The first section mainly includes a brief analysis of microfinance companies and its regulatory system, defining the value of microfinance companies'existence, analyzing the legal and regulatory problems of domestic microfinance companies and the necessity for legal regulations.The second section concentrates on the theoretical analysis of microfinance companies'legal and regulatory system, of which the basic theory are constructed from three aspects including the regulatory body, regulated object and supervisory and operating mode.The third section focuses on the analysis and comparison on the specific practice situation of international micro credit legal and regulatory system which offers some improvable views and measures for reference.The fourth section places its emphasis up on making recommendations and ideas for the legal and regulatory system according to series of analysis mentioned above. First and foremost, the objectives, principles and modes of the legal regulation must be determined to guide the specific construction of the entire regulatory system. The second point is about systematically building up the inventory of legal and regulatory which consists of three aspects including regulatory body, regulated object and regulatory measures. Last but not least, it can be a feasible measure to enliven the effect of the law by revising and improving the relevant legal norms and the introduction of new legal norms.