| In recent years, microfinance companies in China have made considerableprogress. Both the number of agencies and the amount of loans have fast growing. Atthe same time, it has constructed a new microfinance company model of privatecapital investment for profit and credit-only. The microfinance company plays a veryimportant role for the economy and social development. However, with the fastdevelopment of microfinance company, government regulation for the microfinancebecomes more and more important. Some factors increase the risk of microfinancecompany, such as multiple regulation, imperfect system of laws and regulations,regulation means lag etc. If the government regulation of microfinance companyshould not be effectively enhanced, it will undermine the stability of the financesystem in some extent, and even affect the stability of the society. Based on theparticularity of microfinance company and taken the microfinance company ofYunnan province as the study sample, this paper discusses the development situationand the existing problems in the microfinance company regulation, also analyses thereasons. Then, integrating use the Public interest regulatory theory, regulatory capturetheory, financial regulatory trade-off theory and contestable markets theory, combinedwith the existing laws, regulations and policy system, and based on the sustained andstable development of microfinance industry of Yunnan province, this paperconstructs a three-dimensional regulation system of microfinance company. Thisregulation system can be summarized in brief as”One Primary ResponsibilityRegulation Agency and More Auxiliary Regulation Agency; Playing Three Functions;Supervising Three Processes”. This paper is helpful for enriching the literature ofgovernment regulation and finance regulation research, and it will also play importantroles in exploring the perfection of microfinance company regulation in China,improving the sustained and healthy development for the microfinance company. |
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