Study On The Problems In Small Credit Supervision In China

Small credit supervision refers to the relevant departments of the state through aseries of small credit laws and regulations of microfinance and microcredit businesssupervision and management, to its development form of normative, preventdevelopment process and problems, these and microfinance related laws, regulationsand other normative legal file was composed of small credit legal system. In thispaper, the rural microfinance research on the legal supervision makes acomprehensive overview, rural microfinance from abroad and introduced to ourcountry through different historical stages, the author to each stage of thedevelopment of the situation to carry on the thorough analysis. At the same time,also on foreign microfinance legal supervision practice and experience to find a lotof literature and the serious and careful induction and summary.At present, all countries in the world pay attention to the supervision of thenecessity of microfinance. Microfinance diversity service characteristics makemicrofinance institutions in the operation mode is different. All countries to themicrofinance institutions attitude and therefore each are not identical, some countriesor not even will microfinance institutions into the legal category, into the law of thecountry to the supervision of the microfinance institutions also have tight with loose.Small credit in the market to play more role must with other countries adapt toeconomic system, so that to make small credit and financial market stable healthysustainable development. The countries all over the world to microfinanceinstitutions monitoring basic reached the consensus of opinion: first, the interests ofthe depositors must be put in the first place, microfinance institutions must havefinancial license to the public can only absorb deposits, so that it can avoid theillegal operation, the phenomenon of the effective to avoid the occurrence of risk. Tomicrofinance institutions established conditions include: capital adequacy ratio,successive years of profit, sufficient capital source channel, mechanism of creditrating, etc. Second, the law supervision for only issue small credit and not the public to take deposits of microfinance institutions controversial, opposition thinkmicrofinance institutions should be as commercial enterprises, the need for himselfon the loan for supervision, because of microfinance institutions themselves causedby insufficient supervision business risks by itself should bear, and we should notblame to government supervision; Uphold the law supervision for a party think onlyissue microfinance, do not absorb the public deposits of microfinance institutions,with their own development, most only credit not exist microfinance institutions willabsorb public deposits to the microfinance institutions, so, in order to promote thefinancial market benign and stable development for this kind of institution legalsupervision need to advance; Third, to can absorb public deposits of microfinanceinstitutions can not be equally, needs to carry on the separate treatment, such as thecompulsory savings microfinance institutions shall not get savings borrowing wayput out, these savings can only as a small credit guarantee, the use of these savingsdeposit is mainly used to group utility and children education, so saving mode caneffectively reduce the risk of microfinance, so there was no necessary to practicesupervision.Bangladesh Rural Bank microfinance mode introduced in China, after nearly30years of credit mode in our country gradually evolve, experienced from the initialunderstanding, imitation to the current application, and is suitable for China andgradually tend to the sustainable, healthy and robust process. China’s small creditpolicy environment and legal supervision overall condition is according to ourcountry microfinance different stages and different adjustment, evolution andimplementation, and policy environment and legal regulatory changes and can alsoaffect and promote the country’s microfinance development process, between the twodifferent transformation and promote, unceasingly will our microfinance and its legalsupervision policy to further. At the same time, in the situation of our country andeconomic system, and so on big environment under the influence of the background,our country small credit policy environment and legal supervision policy alsopresents new characteristics. The author to microfinance legal supervision situationserious investigation and found that from China’s small credit policy and legalsupervision development perspective, to our country small credit support and understanding through a very slow long process. These and since our country islong-term cautious, conservative treat financial policy attitude. At the same time, ourcountry microfinance has been placed in the exploring stage, had not built a cancompletely suitable for China’s national conditions of legal supervision mode. At thesame time, China’s non-profit microfinance legal supervision, the situation has beenvery serious lack, the state is not issued formal laws and regulations, involvingmicrofinance related problems, government agencies only to inform, opinions in theform of microfinance puts forward related policy requirement and support.To protect the public and investors interests, control and prevent the risk ofmicrofinance, and further guide and support China’s small credit health sustainabledevelopment, make our country diversified financial services system is increasinglyperfect, we should learn from the countries all over the world microfinance legalsupervision of successful experience, and at the same time, analyzes the presentsituation of the development of microfinance and existing problems, work out a setof suitable for China’s national conditions and with Chinese characteristicsmicrofinance legal supervision system. The author from three aspects to strengthenand improve China’s rural microfinance legal supervision advances some rationalSuggestions: one is to establish China’s small credit legal supervision principle, thesecond is to create China’s small credit supervision law, three is to fully improveauxiliary regulatory approach. The author hope that through to our country ruralmicrofinance legal supervision of investigation and research, to our countrygovernment and financial supervision department of the future rural microfinancesupervision work can provide some reference, to continuously promote ruralmicrofinance toward continued, scientific direction.