Perfecting The Research On Microfinance Supervision In China

Microcredit,which originated in Europe and then developed on the continent of Latin America,has experienced 30 years’ development since introduced to our nation in the late eighties. As the name suggests,microcredit means the kind of financial activities which involves small amount of credit money. In narrow sense,it refers to a smaller sum of money a bank or other financial institution provided to customers by loans,but broadly,microcredit is defined as a financial service which supplies to low-income groups or microenterprises. According to the differences,we can tell the change of microcredit’ understanding from shallow to deep,as well as the development course of microcredit which originated as small loans,experienced microfinance phrase,and now developed to a financial service that benefit to all kinds of classes and groups. What is more,the concept of “inclusive finance” has even been written into the Party’s resolution on the third plenary session of the 18 th CPC central committee.Respect to our nation, microcredit is showing a variety of features in terms of business entities and business types along with the development of economy and finance. In China, microcredit appeared as international poverty assistance programs at first, but with the help of economy development and policies’ supports, large commercial banks began to conduct microfinance business. Small loan companies and plenty of non-profit microcredit companies also came into being at the same time. However, while booming, microcredit industry has already shown a number of problems. These issues, such as the incomplete legal supervision system, the ambiguous legal status of microcredit supply body and supervision department, the unsound of credit management system has put the sustainable development of microfinance under threat. Therefore, how to improve our systematic regulation for microcredit, making the market develop healthily has become the top priority mission for nation’s regulatory authorities.Combining with basic national conditions, regulatory authorities refreshed the related laws and perfected regulatory auxiliary ways to improve our microcredit regulatory system by drawing lessons from those countries who have more perfect microcredit market, like Bangladesh, Indonesia, Bolivia, as well as the United States. Such behaviors enabled a healthier, more stable and more orderly development of microcredit market.