The Research To The Risk Control System Of China’s Rotating Credit Association

The rotating credit association, an ancient folk credit financing, has been longstanding in China. It is on the basis of nostalgia, kinship and friendship depended on therelations of zone and kin. It is rooted in country culture，and serves the private capital.As China’s economic development, it will break through the geography and trust, whichmakes the rotating credit association will take on more risk. It has led to many obstaclesin regulate running, that China has not as of yet regulated on the rotating creditassociation directly by legislation and be short of administrative supervision. Embodiedin these problems, such as the imperfect construction of internal system, the uncertainlegal status, and inadequate supervision, would bring down the risk of the bankruptcy.This article aims to study the rotating credit association risk control system, through ageneral overview of it, comprehensive understanding of the rotating credit associationplaying an important role in private capital financing. And for the current rotating creditassociation’s risk control problems, the author raises proposals on improving riskcontrol system to guide to normative development of rotating credit association, andmake it continues to function in bringing vitality to private capital. The article iscomposed of introduction、straight matter and finality, and the straight matter includefour chapter.The first part is an investigation of the general rotating credit association. Firstpresentation of the basic situation of it, to have simple understanding, and extended tothe reason why the author makes it as the research object. Then doing a generalintroduction to the basic structure, operation mode, the main characteristics and legalpositioning of the rotating credit association. Finally, the paper topics based on differentrisk factors divided into major risk types, and make an analysis of the causes.The second part describes the risk control institution of the rotating creditassociation. Reveal the meaning and necessity of risk control of the rotating creditassociation, finally summarize the content of the risk control system.The third part mainly examines the rotating credit association’s risk control systemof other countries and regions. By summing up of the three representative rotating creditassociation risk control systems, Japan, Taiwan, India, derived inspiration and referencewhich apply to the development of China’s.The fourth part is the suggestion to perfect our rotating credit association risk control systems. It ought to study risk control system described above, combined withour rotating credit association would actually run the course of the problems, raisedseveral questions facing in rotating credit association risk control system. Finally on thepremise of problem, on the basis of reference, from four aspects, such as the legislation,administrative regulations, internal system consummation and rebuilding trustmechanism, produced a comprehensive overview of suggestions of perfecting ourcountry’s rotating credit association risk control systems, so as to guide the healthydevelopment of the rotating credit association.