Discussion Of The Supervision To Microfinance

Since the high probability of financial business risks, the precautionary measure of operating riskand social risk for microcredit companies has been regarded as the core of the entire system. While ithas been proposed that the effectiveness of legal system of regulation is not only the most importantexternal factor of risk control system for microcredit, and the vital safeguard mechanism for the rapidexpansion of the industry in the future. In this paper, analysis methods of investigation and contrasthave been employed, from the positivist perspective, inspected the dynamic process from theestablishment of the business to the elimination of microcredit companies, reviewed the currentoperation status of the existing microcredit industry regulatory legislation and supervisory system,then recognized the current regulatory system deficiencies and imbalances specifically, summarizedthe value orientation of the regulatory principles from scattered statute phenomenon, and explored theoriginal appeal of the legal regulatory system for microcredit industry. On the basis of evidences fromresearch, this paper would address practical suggestions for the establishment of the legal regulatorysystem for microcredit companies from applied law perspective.