Legal Analyisis Of Micro-Credit Company

The Micro-credit Company is an important organization form which is mainly provides some microfinance services to rural residents and small and medium-sized enterprises. In our country, when the government realized the huge effects of the micro-credit company on solve the shortage funds problem of small and medium-sized enterprises and agriculture relative system by years of pilot experiment phases, the people’s bank of China and the China banking regulatory commission public a regulation which is named <micro-credit company guidance>on May,2008. The regulation of micro-credit company released the company appear in our country financial organization and the front of the world side. But the author in the study has been found something wrong about their identity nature and the regulatory system by analysis the law and government regulation or policies relating to the micro-credit companies in recent years. Especially micro-credit company has a problem about uncertainty identity, which is the fundamental problems involved in the microcredit system do not have an effective solution restricting the systems prosper development. And this problem has also led to the micro-credit company regulatory system chaos, especially the diversification of the main regulation and supervision business irregularities are also the main factors which restrict the scale development of the micro-credit company. To solve all sorts of problems and support the development of the micro-credit company, the author in this paper suggest the government should be formulate a law immediately which is named<The law of Micro-credit> to regulate the micro-credit company’s all business activities.Micro-credit company has some its unique character in the registered capital,service object,regulators than general Limited Liability Company and financial institutions,these show that the foundation of the small loan company has its reasonable existence. Abroad mainly include the grameen bank in Bangladesh and the United States legal system of microfinance are the two kinds of typical microfinance models represent the welfare and commercial system. Although both the two typical have a big difference on purpose, but its government in order to protect the micro-credit model set some laws and it must be consider their own needs and made the law to safeguard the micro-credit institution healthy development, our country need to keeping up with the former at this point. According to the analysis of our country micro-credit company after all sorts of laws, regulations and administrative rules, it is not difficult to find that the micro-credit company large-scale development couldn’t be come true because of its lack of applicable laws and regulations led to the identity of the nature of company blur and it is arise the regulatory system chaos and the heavy tax burden has been reduce the profit.To solve the existing problems of small loan company, the state should be made a law to certain micro-credit company as non-bank financial institutions clear the identity dispute and also guarantee its independence, for make it better enter the market. And the identity of the nature of embarrassment caused chaos in the regulatory system, after multiple subject detail analysis, found that the most suitable regulatory agency is the China banking regulatory commission. For a long time, it must be act as an regulatory institution to supervise all actions of micro-credit company business.