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The Risk Control Legal Issues Research Of China In Micro-Credit Companies

Posted on:2013-10-24Degree:MasterType:Thesis
Country:ChinaCandidate:Y Q GaoFull Text:PDF
GTID:2246330371470784Subject:Law
Abstract/Summary:PDF Full Text Request
Micro-Credit companies in China were born in the financial environment of the active in private lending activity, the prevalence of the underground banking and SME financing difficulties which are due to strict financial regulation. Micro-Credit companies grow and develop rapidly within a few years as an innovative financial service, which played a positive role in supporting the funding requirements of three rural, SME and individual businesses and has been fully recognized. Micro-Credit companies are the necessary way to solve the difficulties in obtaining loans and undertake an important responsibility to enrich the financial services system due to the fact that Micro-Credit companies actively and correctly guide the folk financing, improve the local financial services, promote local economic development and cover the insufficient of the financial market. Risk against legal mechanism urgently need to improve due to the fact that Micro-Credit companies in the process of rapid development, encounter far greater than the risk of financial institutions in general, and have brought great difficulties to the company’s normal operation and sustainability of the business.This article is divided into four parts. The first part is an overview of the theory of micro-credit, it can provide the guidelines of the research direction in Micro-Credit companies because of the relatively mature theory of Micro-Credit companies research in the domestic.The second part is mainly theoretical analysis toward Micro-Credit companies, including the nature analysis, legal characteristic analysis and deposit-located social value analysis. Through the social function the micro-credit companies make and the financial service they provide, we can better grasp the essence of the financial agency of the micro-credit company. Certain the legal positioning via the legal feature analysis of the Micro-Credit companies, resulting in emphasizing the folk financing problem solving by micro-loan companies, leading the folk capital to normalization transformation and promoting the financial market competition to perfect the social value of the financial service. The third part analyzes the reasons of the specific risks the micro-credit companies confront and their manifestations. The marketing risk mainly contains the interest rate risk brought by the unreasonable mechanism formation of the interest rate of the Micro-Credit companies and agriculture product price risk brought by the imperfect agriculture product price risk-hedging mechanism. The cause of credit risk is the low-level productivity of the rural market and lack of the credit system construction. The cause of the liquidity risk lies in it’s’loan only no deposit’ limited financing channel. The cause of operational risk is the micro-loan companies lack the corresponding inner control system and the human resources.The forth part provides appropriate risk control legal regulation proposals for the specific risks for Micro-Credit companies and attempt to build the legal system of our country in Micro-Credit companies risk control of legal regulation, and thus to guarantee the healthy and stable development of Micro-Credit companies.
Keywords/Search Tags:Micro-Credit, Micro-Credit companies, risk research, legalregulation
PDF Full Text Request
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