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Research On Legal Problems Of Small Loan Companies

Posted on:2014-03-22Degree:MasterType:Thesis
Country:ChinaCandidate:X H WenFull Text:PDF
GTID:2266330401985023Subject:Economic Law
Abstract/Summary:PDF Full Text Request
Micro-Credit is the product of financial innovation, a new type of povertyalleviation tool. By providing small credit loans to the poor, the Rural Bank of Bangladeshhelp the poor out of poverty, in turn, the poor stage owing on the loan, guarantee highrepayment rate, which make the rural banks to obtain sustainable development. The RuralBank’s success make the micro-Credit promote to Africa、Asia、Latin America and otherregions. In1993, Micro-Credit is introduced to china. In the early, Micro-Credit mainlyhelp the poor. Until2005, China conducted a pilot of Micro-credit Company in fiveprovince, started the commercialization of Micro-credit in China. The Micro-creditCompany is specialized operating Micro-loan. In2008, the people’s Bank of China andChina Banking Regulatory Commission issued “The Pilot Guidance on Micro-creditCompany”, defines the legal status, the establishment, source of funds, interest rates,supervision and management. This became the main legal basis of Micro-credit Company.Since2005, Micro-credit Company broaden the financing channels for the farmers andsmall and medium-sized enterprises, regulated the folk finance. However, as a new thing,the imperfect legislation made the company have many legal issues.This paper is based on the “guidance” and relevant laws and regulations, refer to thelegislative experience from Bangladesh、Indonesia、the United States of America, analysesthe legal problems and puts forward some improvement suggestions.This paper is divided into four chapters, about thirty thousand words.The first chapter introduces the basic theory of Micro-credit Company. The firstsection introduces the company’s meaning and characteristics. The second sectionintroduces the development process of the company. Since1993, Micro-credit in Chinahas experienced four stages, until the fourth stage to appear Micro-credit Company.The second chapter introduces the legislation situation of the Micro-credit Companyand analyzes the existing legal issues. First section overview the relevant laws andregulations, on the basis of this, put forward the legal problems, including the legislativelevel is low and the conflict of laws、blurry of the identity、legislation is too restrictive tothe source of funding、heavy taxes、regulation of the main is confused、 risk prevention measures are not reasonable.The third chapter introduces the legislation experience of micro-credit institutionsoverseas and the enlightenment to our country. This part selects three representativecountries: Rural Bank of Bangladesh is the microfinance institutions, non-governmentalorganizations to help the poor; the people’s Bank of Indonesia is a formal financialinstitution and commercial; as a developed country, the microfinance legislation of UnitedStates of America is different from the two developing countries. Combined with theproblems mentioned in the second chapter, I summarized the enlightenment to our country,paving the way for the following chapter.The fourth chapter is about the proposals of improving the micro-credit company. Onthe basis of the first two chapters, the author puts forward concrete measures to improvethe Micro-credit Company legislation. First, we should draw up a unified “Micro-creditCompany law” by reference to developing countries. The second is to clear the nature ofthe company for non-bank financial institutions, to end their illegal status. Thirdly, in thepremise of not absorbing deposit, we should through other ways to broaden the financingchannel, such as the establishment of microfinance fund. Fourth, we should apply thepreferential tax policies to the company. Five is making the CBRC bearing the regulatoryresponsibility, as the professional regulatory body can achieve effective supervision. Six isthe establishment of effective risk prevention measures, such as the completion of thecredit system, improving the corporate governance structure, improving the Micro-creditCompany association, strength the selection and training of employees.
Keywords/Search Tags:Micro-credit, Micro-credit Company, Regulation, Source of funds, RiskPrevention
PDF Full Text Request
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