Supervision Of Microfinance Company Legal Issues

Microfinance as a financial innovation in the world for many years of developmenthistory, its every corner of the world. As China’s economic development, increasingprosperity of financial markets, the financing needs of the growing microfinancecompany came into being. Microfinance company in China’s development time wasshort, but it has made remarkable achievements.2005, at the People’s Bank of China ledmicrofinance company in the country to start a pilot provinces and autonomous regions,which is a milestone in the history of microfinance. Small loan company based on"three rural" and SMEs, private capital will be introduced to the financial markets, andactively promote the standardization and legalization of private finance. The emergenceof small loan companies, to a certain extent, ease the plight of the financing of SMEs,but also for China’s agricultural development has provided some support, but the resultscertainly gratifying years of development, but also exposed many problems, how toresolve them issues will be a priority to protect small loan company sustained andhealthy development. These questions focused on the performance of the regulatorylevel, but its root lies in the regulatory law is not perfect. Legal status is unknown,inefficient regulatory body issues chaos, regulatory and supervisory measuresinappropriate content has become an obstacle to the development of small loancompanies "stumbling block." To solve these problems we must proceed from theexisting laws and regulations, by the current regulatory law for research, to buildChina’s specific conditions suitable regulatory framework and related systems, in orderto improve our existing regulatory system.Currently, the regulatory regime for access to many restrictions and operationalconstraints of the small loan company’s development, which supports the "three rural"development of the mission was not well done. From a management approach"guidance" and around the point of view, the current regulatory approach mainly asfollows: in administrative, regulatory compliance-oriented, market access andoperations demanding market exit regulation simple, self-discipline and socialsupervision of a serious shortage of long regulators and approval authority, the right to inspect and audit the separation of administrative punishment. Cause of the status quosystem microfinance company depends for value conflicts and paths.In this paper, the author mainly on the regulatory system of microfinancecompanies Research, this study is divided into five parts, as follows:The first part is an introduction, mainly introduces the background and significanceof this research, current research and research methods;The second part is the nature of the small loan companies, mainly for the nature of thesmall loan companies to define and to make comparisons with other financialinstitutions;The third part of the regulatory system for microfinance companies currentsituation and problems of existing microfinance company to sort out the regulatory rulesand regulations, a clear regulatory elements and problems, and then seek the cause ofregulatory issues;The fourth part is the foreign regulatory regime MFIs experience and learn fromthe experience of some of the major companies developing microfinance regulatoryframework for the improvement of the regulatory system for reference;The fifth part of the small loan companies in order to improve the regulatorysystem is recommended. Combined with lack of successful experiences of small loancompanies and regulatory system exists to make recommendations accordingly.