Research On The Legal System Of China’s Rural Micro-finance

Solve the "three rural" issue is inseparable from the development of ruraleconomy, and development of rural economic is inseparable from the financialsupport. Rural Micro-finance can meet the needs of the rural poor and protect theirrights to subsistence, development, and the basic financial, which can promote ruraleconomic development. Currently, the most important factor of restricting thedevelopment of China’s rural micro-finance is the lack of legal protection of ruralmicro-finance and there are institutional barriers. Years of reform experienceshows,the reform and development of micro-finance always concerns the reform ofinstitutions,but ignores the research of legal system.So, research on ruralmicro-finance legal system and the legal system of rural micro-finance wereimproved,which has theoretical and practical value for the development of China’seconomic development and the rule of law in China’s financial.Currently, research on the related systems of rural micro-finance mostly fromfinance or economics point. Although these studies will mention the improvement ofthe legal aspects of the system, but there are a few words, so this problem can’t befully explained. In this paper, for the purpose of protection of rights and interests oflow-income farmers, and from the elaborate theoretical basis for the legal system tostart. This paper summarizes the successful experiences and learn from foreigndomestic success examples about micro-financial aspects of the legal system in ruralareas. This paper uses of the underlying theory of law to put forward a sound proposalfor the legal system of China’s rural micro-finance problems from organizational legalsystem, financial services legal system, legal system of financial markets, the legalsystem of financial supervision in four areas. Specifically,The first part describes the legal system for rural micro-finance foundationtheory. Rural micro-finance aims to provide basic financial services to poor farmers inlow-income, and rural micro-finance legal system is the institutional norm of ruralmicro-finance. Reference points of scholars, this paper from four aspects, which areorganizational legal system, legal system of market, financial services legal systemand the legal system of financial supervision. to consolidate the provisions of existinglaws and other normative documents,pointed out deficiencies of the existing legalprovisions currently in these four areas still exist. China’s financial legal system inrural areas experienced four phases, the legal system during initial, the legal systemduring the stagnation, period of reform and development of the legal system, the legalsystem during the development of microfinance institutions In this paper, thecharacteristics of the legal system of the present stage of development ofmicro-finance institutions are summarized.The second part is an instance of analysis and lessons learned on ruralmicro-finance legal system. At present China’s rural micro-finance in the country to carry out. The relevant state departments and local governments have introducedpolicies related measures, especially local governments more of the provisions of thisproblem. This section of Pingyao in Shanxi micro-finance company, ZhejiangChangxing rural banks and mutual funds Jilin Baixin rural community are threeexamples. Analysis of these three areas of policies and regulations on ruralmicro-finance institutions, and noted clearly serve our country can relax interest ratecontrols, rich loan guarantees, the implementation of agricultural insurance and creditmechanisms for rural microfinance legal system be improved.The third part is to investigate the United States, Japan and Bangladesh RuralMicro-finance legal system status. American Community financial system, ruralcooperative organizations in Japan and the Grameen Bank in Bangladesh villages arethe organizations which are for low-income farmers in rural poverty, lacking of fundsto solve its financial problems. America’s "Community Reinvestment Act"compensation mechanism with tilt and policy restrictions on capital outflows inbackward areas and the use of public regulatory regime for the supervision offinancial institutions in rural communities, and also innovative credit guarantee.Japanese government intervention in rural financial institutions modest establish acomplete system of legal system in rural finance. Grameen Bank of BangladeshGrameen implement market-oriented interest rate mode of operation, provides avariety of loan guarantees.The fourth part is a proposal for improvement of the rural micro-finance legalsystem. To Improve China’s micro-finance’s legal system to safeguard thefundamental interests of the rural farmers. The government use the legal means tointervene rural micro-finance institutions’ conduct appropriately to maintain ruralfinancial security, to ensure a balanced development of rural and urban finance. Bysumming up the experience and learn from at home and abroad in the ruralmicro-finance aspects of the legal system, this part is made under the form of differenttypes of rural micro-finance institutions, adopt legislative discrete patterns and waysto improve the legislative level to improve the legal system of the organization.Develop agricultural insurance services legal system legal system, improve theexisting loan guarantee system. Improve market access for rural microfinanceinstitutions the legal system, the implementation of market-oriented interest rateregime. Develop specific regulatory legal system, attempting to public regulatorysystem.