Research On Legal Institution Of Micro Credit Company

As a new system of financial reform, the micro-credit company plays an importantrole for small and medium-sized enterprises and the "three rural" on funding sources andfinancing channels. It solves shortage of finance and active the county economy.Meantime, it opens up new roads for local government organizing private financialresources to promote coordinated regional economic development. Since the firstcommercial microfinance company set up in2005, micro-credit companies have generallyadopted throughout the country. According to the statistics report of the Chinese People’sBank shows that micro-credit companies, closing the end of December2011, there weresmall loan companies exceeded4000. Six years, micro-credit companies to achieveexplosive growth, has become a force to be reckoned in the financial system in the country.Micro-credit company as a new thing is still in the exploratory stage. The unclear legalstatus, lack of funds, inadequate the regulatory mechanisms seriously hamper thesustainable development of micro-credit company. Judging from the current situation,China does not have a legal system the provisions of small loan companies. The People’sBank of China and China Banking Regulatory Commission issued the "small loancompany guidance is just a framework of guidance document. Therefore, it is necessaryfor the actual situation of the small loan companies, foreign successful experience toformulate a unified legal system of small loans, in order to eliminate the legal difficultiesof small loan companies, and promote healthy and orderly development of the small loancompanies.This article has four main parts. The first part is the introduction of the generalproblem of the small loan companies. This section introduces the concept of micro-loans,small loan companies, characteristics, comparison of the development background andwith other financial institutions, highlighting the importance of microcredit as a financialsystem of innovation development of China’s financial markets. The second part is thecurrent situation of China’s small loan companies and find existing problems. The thirdpart is the operation of foreign microfinance institutions and to identify successes and shortcomings of small loans abroad, we absorb and learn from them in the futuredevelopment. Fourth part is to improve the legal advice for small loan companies in China.The part is the focus of the article. I give a small loan company positioning, mainly tosolve the problem of deposit does not loan the funds, the sustainable development of smallloan companies and the main unknown regulatory and other issues, and then get theappropriate countermeasures for these legal question.