The Thinking Of Perfecting The Legislation Of The Small Loan Company

The small loan company in our country has grew explosive since the People’sBank of China and the China Banking Regulatory Commission jointly issued "Aboutsmall loan company pilot guidance " in May2008. Financing difficulties has been thebottleneck of restricting our Small and Medium-sized Enterprise’s development, thisproblem is particularly prominent under the influence of the financial crisis. As themain force of the informal finance, small loan company has played an important rolein alleviating of the small and medium-sized enterprise’s financing difficulties. At thesame time, the small loan company also played a positive role in acting financialmarket and the county economy.All these make sure the economic more stable in thefinancial crisis. No doubt to and, the small loan company solve the capital require-ments problem of the vulnerable groups who were not covered by the formal financialsystem effectively. However, during the process of actual operation, the small loanscompany is faced with many legal risks, such as incomplete legal system, the legalstatus is not clear. These are also stumbling blocks to small loans company in futuredevelopment process: it is difficult for the SMEs to keep sustainable development dueto the existing credit-only system that will cause the shortage of funds, the lack of aclear supervision agency, the lack of effective legal measures to prevent risks, etc., Inview of this, I think that it is necessary to regulate from the angle of legislation, estab-lish an effective risk prevention legislation system.This article embarks from the abo legal problems of small loan companies, com-bined with Bangladesh, Indonesia and the United States about microfinance maturelegislative experiences, puts forward the countermeasures of perfecting our country’ssmall loans company legislation, the legislation system of perfect regulation micro-credit company, in setting the conditions of small loans company law is not enoughmature conditions for the small loan company management ordinance, legislation togive the legal status of private financial institutions, small loans company financingchannels, broaden the microfinance company clear small loans company supervisionof the main body and so on.