Legal Research On Micro-credit Company

In recent years, our government have put forward the policy of building a "harmonious society" and "new socialist countryside", the speed that China transforns from a traditional agriculture country to a modern agriculture country accelerate. With the improvement of rural infrastructure, the acceleration of the industrialization of agriculture, harvest getting better, sales and income of famers increasing. This is good for improving the living standards of farmers and building a harmonious society and maintaining social stability. new socialist countryside building needs financial support greatly. However, the major commercial banks set up few outlets in rural areas, even the banks which had set up outlets in rural areas begin to reduce the number of outlets in rural gradually, so only the rural credit cooperatives can provide financing suport for the construction of "new socialist countryside". To this end, the CPC Central Committee pointed out that our country need to accelerate rural financial reforms, cultivate micro-credit organization sponsored by natural person, legal person or corporation. The People’s Bank of China and Banking Regulatory Commission officially promulgated " micro-credit company guidance" on May the 4th,2008. The micro-loan companies run well in the last year, it play an active role in improving the rural credit market conditions.But it also face many problems,like:the definition of small loan companies is not clear, the legal status of micro-loans company is vague, and regulatory is excess.For micro-credit is a new affair, internal governance seems to be rather rough,besides, it do not pay enough attention to the risks like moral risks, business risks and natural risks, so how to enhance the capability to control these risks is also very important.To solve these problems, this thesis study the practice of domestic and foreign-related country.Firstly,the thesis analyse whether the company is a micro-credit financial institutions or not. As long as we solve this problem, micro-credit company’s funding sources and external regulatory confusion will be solved. Secondly, this thesis use the legislation and practice of foreign countries for reference to study how to enhance the capability to control the risks that China’s micro-credit company face. Finally, this thesis gives a number of recommendations, including:definit the legal status of micro-loan companies clearly through legislation,broaden the source of funding for micro-loan companies, innovative guarantee form.