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Legal Research On Supervision Of Consumer Finance Company

Posted on:2016-07-31Degree:MasterType:Thesis
Country:ChinaCandidate:J Y ZhouFull Text:PDF
GTID:2296330461458909Subject:Economic Law
Abstract/Summary:PDF Full Text Request
Although there is just 5-year history of Consumer finance company in China, it plays a certain role in promoting consumer. Since 2009, China Banking Regulatory Commission issued the "Pilot Administrative Measures for Consumer finance companies ", there are seven Consumer finance companies had been established, and the investment amounts ranging from 300 million to 20 billion. Most researches of Consumer finance company are based on the perspective of economics about consumer credit behaviors and risk prevention, but less research from the perspective of law, especially in regulatory. So it’s full of theoretical and practical significance to have a further study in Consumer finance company regulatory and find out the problems of existing regulatory model. The innovation of this paper is from two aspects to build and improve the existing regulatory system. In the external supervision aspect, to build a thorough external regulatory system need to improve the legislation. Establish the supporting laws and organize industry associations. And in the internal control aspect, it is important to do the following four steps. Firstly, improve the internal corporate governance structures, secondly, optimize the manager elected system, thirdly, innovate products and business models, and last, perform the social responsibility of the company.This thesis includes foreword and five main sections:The first part introduces the basic situation of China’s Consumer finance companies. Compare with foreign company, summarizes the characteristics of China’s Consumer finance companies. Then identify the basic of regulatory in economics and the law. And explain the supervision targets.The second part demonstrates the necessity for regulation. Under the market liberalization, Consumer finance company has its own shortcomings, and needs to be regulated by law and regulation; and supervision is also conducive to protect the right of the financial consumers, and maintain the stable operation of the financial industry.The third part is the key point of this article. Based on the analysis of current external and internal supervision of Consumer finance companies, noting the major problems of the regulatory and find out the cause. The external questions focused on the un-perfect legal system, poor operational of the principles and un-complete industry self-regulation. The internal questions focused on the potential risks of special ownership structure and business model, the moral hazard of management and the consumer credit transaction risk.The fourth part analysis the regulatory measures and characteristics of Consumer finance company in United Kingdom, United States and Japan. Summarized the worth-learning experience including improving the legislative system, developing the industry association, protecting consumer rights and promoting personal credit information systems.The fifth part is another key point of this article. Compare to the problems that mention in the third part, this part is focus to make recommendations from both internal and external supervision to improve regulation system of Consumer finance company. Taking measures to improve the external supervision such as improve the regulatory legislation by laying down the consumer credit laws, improving the financial support legislation and personal credit information system. Refine the “Pilot Administrative Measures for Consumer finance companies”. Form the self-regulatory industry organization. By improve corporate governance structure, optimize the administrator system, innovate products and business models, and fulfill the company’s social ability to improving internal supervision.
Keywords/Search Tags:Consumer finance company, consumer credit, external supervision, internal supervision
PDF Full Text Request
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