Legal Issues Reach Of Micro-credit Corporation Supervision In China

The governments of some provinces and cities have pushed positively on the pilotproject of companies since2005, which makes the micro-loan companies develop fast.The legal documents of “The Guidance on the Pilot of Micro-Loan Company "and“temporary rules about the micro-loan company reforming to village banks”published in2008and2009, which provided a legal environment for the micro-loancorporations. However, as the development of the micro-loan company is still in theinitial stage, the supervision of the legal system is not perfect, which becomes thebottleneck restricting the development of the micro-credit corporation. There are a lotof problems in operations, which shows the necessity of solving the legal problems.Therefore, analyze the legal problems of supervision and construct a proper legalsystem, is the key point to promote the rapid development of the micro-loancompanies.This thesis consists of four parts：The first part: The Overview of the Supervision Theory of Micro-LoanCompany.In this part it describes the concept and necessity of the supervision ofmicro-Loan companies, and it refers to the supervision measurements of some relativefinancial organizations for comparison. the key point of this part is summarizes thelaw of the supervision of the micro-loan companies, which is the basis on theperfecting of the law.The second part: The Law of the Supervision of Micro-Loan CompaniesAbroad and Its Inspiration to China.In this part it analyses the mode of micro-credit institutions of America,Bangladesh and Indonesia, and makes comparisons to the three main internationalsupervision organizations, then summarizes its operation experience and theirinspiration to China, in order to provide reference to the improvement of our country’smicrofinance company legal system.The third part and the fourth part are the key parts of this thesis.The third part: The Analysis of the Legal Problems of the Supervision ofMicro-loan CompaniesThis part demonstrates the situation of the supervision of the micro-loan companies and indicates the legal problems. For instance, the legal system is notspecific; the lack of the subject of regulation; Furthermore, there are some issuesexisting in regulatory content, which are the internal supervision and self monitoringand the credit regulatory environment.The fourth part: the Perfection of the Law in the Supervision of theMicro-Loan corporations in ChinaBased on the analysis in the previous parts, in this part it gives proposals to thelaw of the supervision of micro-loan company in China: first of all, it tries to perfectthe law through the choosing of the mode of legislation and the establishing ofrelative legal system; the key point is that our country should try to make a"microfinance law", and in which set a chapter to regulate the small loan company.Second, make clear of the subject of supervision, based on the experience abroad,make the Banking Regulatory Commission as its authorities for supervision; third,specify the supervision content of micro-loan companies, which is discussed from theadmittance and quitting mechanism,the establishment of fund sources, setting interestrate and controlling risk; Finally, perfect the supervision of auxiliary systems, whichis discussed from establishing and perfecting the credit inquiry system and theSelf-discipline management of Industry association.