On The Nature Of Micro-credit Company And The Ways To Improve Current Law System

As a type of financial innovation, micro-credit company evoked greatenthusiasm among common Chinese people, especially after the issue of＂the guidance of micro-credit company＂in May2008.Many people explorewith great passion in this field for many years to accomplish their dreams.They’ve made great achievement, but micro-credit Company is still freshnew, we have not enough experiences and the regulations and laws are notperfect, we need to bring the lessons and experiences into laws andregulations and fix them down. Laws and regulations should be made to pushmore and more micro-credit companies established in China.In this thesis, it uses the methods of comparative analysis, economicanalysis, theory analysis and etc to analyze micro-credit company.Together with the world’s micro-credit practices, China’s financial lawsystem and the experiences of China micro-credit company, also we takethe lessons of India micro-credit crisis on2010, such as too highinterests and money first etc. and deviate from its purpose, the thesisanalyzes the problems in regulations about micro-credit company from thecompany’s legal position, supervisory organizations, and future etc.,pointed out the problems in existed regulations and laws aboutmicro-credit company and proposed some measures for improvement. So dothat to promote micro-credit company to grow steady and fast! There are three sections in this thesis. The first section is theoverview of micro-credit company. This section introduces micro-creditcompany’s definitions, natures, history and current status in China.Analyze the natures of micro-credit company in law and its positionthrough theory. And also introduces some successful models abroad. It’sthe foundation for following sections.The second section is about the existing problems from law perspective.The author firstly do some thinking about the micro-credit crisis in Indiain2010and get some lessons from it, based on the running of Chinamicro-credit company, the thesis analyzes the problems existed in lawsand regulations and proposes some suggestions for improvement. All in all,we should position the micro-credit company as financial company insteadof common business. This will solve the regulatory confusion aboutmicro-credit company. This is better for the supervisory and futuredevelopment.The third section is the counter measures based on the second section.It suggests that higher level of＂micro-credit company law＂should bemade to supervise all low level regulations. At the same time thegovernment should support strongly in policy and finance to micro creditcareer, try to find ways to maintain their business continuously andsteady. And government should also design different levels for differentfinancial companies and design their entry and quit mechanism，then ourfinance career will be booming after laws and regulations are ready andgood implementation.