On The Construction Of Legal System About The Micro-credit Company

Micro-credit is the current situation in China to support the rural the major initiatives of small and medium enterprise development. Has been proved that there is a small loan company has created opportunities for the legalization of private capital; to spread risk financial products, opening up new channels. However, the small loan companies operating in China there have been many problems. Regulatory defects in the company decided to run on the lack of security; nature of the defects on the assets of the company can not maintain the stability of the decision; lack of external resources defects in liquidity difficulties in its operations.Existing legal system on the effective supply of small loan companies is its ability to achieve normal operation and healthy development of the core. However, the small loan companies on very sound legal policy. On the one hand there is a lot of blind system; the other hand, policies and regulations on small loan company in too much government interference. Focused on current problems in the access, operation and exit the three areas. In the financial regulatory system, the current legal system related to the regulatory body, the content management, monitoring forms of regulation and regulatory standards and so confusing.To solve these problems, China should improve the micro-loan company legislation, may consider developing a separate "small loans to the Company Law," or specify the micro-credit method, the small loan companies to be provided as a chapter. By way of separate legislation the nature of the small loan companies, the legal position and responsibilities be clarified further. Meanwhile, the legislation should follow the concept of sustainable development and prudent regulatory philosophy, according to agriculture based, the purpose of services for SMEs, and expand financing channels for small loan companies and improve the loan guarantee measures to reduce the company's business processes microfinance inappropriate restrictions. Small loan companies improve corporate governance structure, strengthen the small loan companies inside and outside the regulatory system designed to provide a basis for healthy and sustainable development.