The Research On The Operation Risk And Supervision Problems Of Micro-loan Company

As emerging microfinance institutions, micro-loan companies’ appearance largelymakes up the gap of the existing main bank financial institutions for the financing needs ofSMEs, and from the end of2005, when China’s first commercial micro-loan company wasestablished, to the end of2012, when the number of micro-loan companies explosivelygrew to more than6000, the great enthusiasm of private capital to participate in thefinancial industry is obvious. However, we can not only see the prosperity of the industry,as a special industry to engage in credit operations, operational risk issues undoubtedly isthe most important, How to control its risk issues has attracted a lot of attention, bothinside and outside the profession. In the control of operational risk of micro-loancompanies，there still exists imperfect internal governance problems and non-standardexternal supervision problems, Therefore, in-depth study of the problem of micro-loancompany’s operational risk and supervision, strengthen the internal control management ofbusiness risk, taking efforts to promote the micro-loan company’s stable and sustainabledevelopment, and giving full play to the functions of the new type of rural financialinstitutions has important realistic significance.This paper took the method of questionnaire and on-the-spot interviews to conduct alarge sample survey of micro-loan companies in Shandong Province, and analyzed it in thesurvey data collection basis. In this paper, we take Shandong Province as an example, toresearch the micro-loan companies’ operating risk prevention issues from the perspectivesof small loan companies as well as the regulatory authorities, and draw the relevantconclusions. This paper is divided into six parts: the first part describes the researchbackground, the significance of the research system, the content, ideas and methods ofresearch, finally presents the innovation and shortcomings of the paper; The second partintroduces the basic theories of this paper; The third part analyze the mechanism of creditrisk through the theoretical model; The fourth part analyses the various risks faced by themicro-loan companies, including: credit risk, operational risk, interest rate risk, andcompliance risk; the fifth part analyses the regulatory status quo, and the problem of thesmall loan companies at this stage; based on the previous analyses, the fourth part givessuggestions to micro-loan company for the prevention of operational risk and regulatory. By the analysis of the above several parts, this paper finally draws that to controlmicro-credit companies’ operational risk, it must be combined with each other through theinternal governance and external supervision.