The Research Of The Regulatory Legislation In Small Loan Company

From2005when the pilot project is initiated, through8years of development and improvement small loan companies have exerted enormous impact on guiding folk capital, addressing the financing of small and medium sized company, promoting regional economic development. Small loans companies have encountered issues such as financing difficulty, heavy tax, the limit of legal "bottleneck"on loan interest rate etc. It is priority to address those issues so as to ensure the virtuous development of small loan companies. In practice, partial small loans companies have conducted illegal operations such as illegal lending, usury, illegal fund raising, inter reginal business which have severely affected our finance order hence legal regulation is needed. However, the provincial government has launched related regulatory legal documents which is contradicted with superior legislations. Hence, it caused disorder in regulation and regulation based on legislation is needed urgently. The research on small loan companies conducted by small loan companies are more inclined to the construction of regulatory system and it further puts forward the need to improve the legislation of small loan companies or launch the corporate legislation of small loan companies as soon as possible. However, there is little research on how to implement this operation. This paper has mainly addressed why legislations should be made to regulate small loan companies as well as how to establish the legislation.The first part firstly introduces the legislative settings in which alert is brought to our nation by small loans companies when they enter systematic construction as well as Indian small loans crisis. On the other hand, it should discuss the two legislative reasons including the reason for the legislation and whether the legislation is viable. Lastly, it illustrates the legislative purpose is to promote the virtuous development of small loans company through stipulating the supervision order of small loans company.The second part mainly examines why the legislation should be made from legal perspective. Firstly, it analyzes the legislation situation of small loans companies and then organizes the regulatory legislation of our current small loans companies. Moreover, it also categorize and summarize those content through which it concludes the development trend of regulatory legislation from abstract to concrete. On the other hand, it also investigates various issues such as low legal status, the conflict existed between legislations, the unreasonable legal standard, legal lagging, the constant change of law, lack of stability etc. In the end, it conclude that the regulatory legislation is urgent.The third part mainly deals with the issue of how to make legislation and it is conducted from both macro as well as micro aspects.From macro aspect it mainly starts from the status of the law, what logic is contained in the concrete structure of law. Initially, it discusses the method of legislative selection in small loans company through which it recommends us to adopt the legislative method where the central government should unify the law on major events and the "rule according to the situation" of local regulation in various regions. On the other hand, it designs the regulatory legislative framework of small loans company. Moreover, it conducts layout design of small loans companies regulatory law in Lenders Ordinance. Afterwards, it puts forward the legal framework of small loans company regulatory strategy launched by provincial government.In micro aspect, it involves the logical perspective in terms of who should regulate, what to regulate and how to regulate and then the regulatory legislative system of small loan companies is designed. Initially, it demonstrates the CBRC has authorized provincial government to exercise supervision rights. The provincial government needs to entrust the financial office as the supervision department. On the other hand, based on the supervision content of small loans organizations both in domestic and abroad it puts forward that our nation should mainly supervise the license issuing, financing method, business scope, interest rate regulation etc of small loans company. Moreover, it points out recommendations such as the registration principal capital should be reduced, bidding for license issuing, opening financing proportion and business scope, establishing small loans registration exemption system, reducing the difficulty of transferring to rural banks. At last, it evaluates the current major supervising strategies, what supervision measures should be taken in supervision, what suitable conditions are chosen to conduct design etc.