| Small-loan Company was born under the environment of small and medium-sized enterprise (SME) financing difficulties, private lending activity, underground banks prevalence and strict financial supervision. From the establishment of seven pilot small-loan companies in2005, development has reached the scale of more than six thousand numbers. It shows that small loan companies in china have gradually gained recognition of the society. It is of great significance to the prosperity of the financial industry, make up the rural financial services, promote the competition among financial institutions and alleviate the SME financing difficulties.In2009, the CBRC issued the "Interim Provisions on Small-loan Company Restructuring into Village Bank", which clarifies the access conditions about small loan company restructuring into village bank. In2012May, the CBRC issued the "Implementation Opinions on Encouraging and Guiding the Private Capital Entering the Bank", which allows small loan company restructuring into village bank. But compared to the current situation of Chinese financial institutions, small loan company shall have reasonable space for its survive and thrive. The reason is that small loan company has flexible microfinance which can meet peasant and SME financial needs, and flexible interest rate pricing mechanism and high interest rates. It makes the private lending legalization, and more important is that it is impractical for small loan company restructuring into village bank, so it is necessary for its existence.The construction of legal system, the formulation of appropriate regulatory system and a sound supervision measures are the sustainable development of micro credit company’s security. At present, domestic regulations of small loan companies are still in the chaotic state,"Guidance on Pilot Small-loan Companies" lacks of authority and huge differences of self-published normative documents between provinces make things even worse. There are a lot of problems in supervision of the small loan companies. Facing to this society environment where opportunities and challenges coexist, we still have a lot of work to do to figure out how to conduct legal supervision and achieve the goal of promoting the healthy, orderly and sustainable development of microfinance companies and preserving our financial stability.From the reality of Chinese small loan companies, using the way of combing theory with practice, quantitative and qualitative to systematic analyze and discuss the generation and development of the supervision legal background, regulatory measures, and regulatory barriers on small loan companies, then learn form the successful legal supervision practices of foreign commercial microfinance organizations, and finally put forward some suggestions on supervision legal system and related measures to promote the sustainable development of small loan companies in China. My paper includes four parts:The general analysis of the small loan company and the necessity to supervision, then take an explicit notice about the nature of small loan company and understand the value of its long-term deposit and the necessary legal supervision.Mainly lists the successful model of foreign commercial microfinance organization about the supervision legal practice. Such as the United States has a relatively complete microfinance law, in the form of law to promote the capital into vulnerable groups. Japan has a special supervision department in classification of supervision, which emphasizes the information disclosure and risk prevention of the micro credit organizations. Grameen Bank in Bangladesh adopts the group of UNPROFOR to reduce credit risk. South Africa has the special supervision and management committee to implement regulatory supervision of microfinance organizations and takes assault check to borrowers to explicit the usage of loan. BRI-UD has credit loan funds from savings, make its credit income to cover its operating costs, and through profits continued to expand the depth and breadth of its business.Fragment the regulatory status and deficiencies of small loan companies in China at present. Starting from the regulatory practice in China, it can find a lot of problems and difficult in the development of small loan companies. First, the lack of the special legal,"Guidance on Pilot Small-loan Companies" is just a principle guidance which has a low rank of legal, and huge differences of self-published normative documents between provinces make things even worse. Second, regulatory body is not clear, there is regulatory confusion, leading to multiple regulatory discontent, and even the unattended situation. It sets against the law on the separation of supervision and punishment from regulatory body. Third, in the supervision content, related to the problems about its market access conditions, interest rate range, additional funding, management limit, risk control and the market exit approaches.Through the above discussion to put forward suggestions for perfecting the small loan company supervision legal system in China. We must first determine the nature of the company. Secondly, make the law that specifically for the small loan companies, then revises and improves the relevant supervision regulations to let the supervision has the corresponding legal effect. From two levels to clear the supervision body of small loan company, the central bank and the CBRC adopt uniform implementation of the prudential supervision at the macro level, and the province financial office set up a small loan company supervision and management committee which adopts the implementation of Non-prudential supervision at the micro level, it also can build a provincial supervision information system for the first time to understand the dynamic of the company. Finally, improve the small loan company special legal system of the supervision and regulatory measures; perfect the credit system and structure relevant industry regulation and self-discipline association to promote the sustainable development of small loan companies. |
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