| Microfinance companies are the business entities who principally provide small amounts of credit service for the low-income people and enterprises. It has a dual function of poverty alleviation and provision of financial service. The emergence of microfinance companies is fully accords with the needs of the market and effectively easing the farmers and enterprise. Moreover, as a new kind of financial innovation, it is playing a positive role in promoting private financial legalization and standardization. Microfinance companies still in the initial stage though it has been developed nearly ten years from the beginning of the pilot. The relevant laws remained open-minded about the basic rules or the rules are unreasonable. These problems increasingly prominent in development, including the rules of laws are rudimentary, the regulators are imperfect, the funds provided is very limited, high credit risk, heavy taxation and the fuzzy of future development. By analyzing the legal nature of the petty loan company’s definition, the defects of the existing legal system learning from the micro credit system’s successful experience of Bangladesh, Indonesia, Bolivia and America. And the development of microfinance companies in China cannot without:To improve the legal framework for microfinance companies; To improve the regulatory system; To improve the specific system design for microfinance companies. |
