Research On The Legal Regulation Of Microfinance Companies

Microfinance is a new thing happening in recent years, rapid development, which eased the problem of financing SMEs. Making the rural financial market more active, be regarded as an innovative financial system. With the continuous development of small loan companies, the problems exposed more and more, the most important reason is that the current legal and regulatory system is not perfect. For example, the system does not provide a clear regulatory body, the various regulatory body simply could not tell where his duties and all-around; content regulation is too harsh, no one relaxed external environment for its stable operation. Problems described above resulted in microfinance companies encounter difficulties in our country’s development, it can not grow. Until now, there is no legal system to locate the entire microfinance company legal status in our country, in terms of supervision, nor with the relevant laws and regulations. Observation of small business company, you wi services, but in fact it is in accordance with "Company Law" established, and can not apply to " Commercial Bank Law", thus, microcredit the company’s actual business operations do not match. Another aspect, and our bank loan guarantees expressly provided detailed different collateral requirements needed for microfinance companies are not perfect, it will seriously affect the investment enthusiasm of investors. Just as there is no security in general, most people are unwilling to take such a big risk. The third aspect, the regulation of microfinance companies, according to the relevant provisions of the guidance, the CBRC is not regulated microfinance company, but its location is responsible for supervision of the relevant government agencies. From the above, whether they are financial institutions, small companies, there are still fierce controversy, with its regulatory body is not clear. Therefore, in accordance with the idea of small companies will not be able to control the risks of financial institutions, according to the guidance of thinking to deal with the risk, microfinance companies obviously not the most favorable.Topic of this article is to study the company’s legal microfinance regulatory issues. This article is broadly divided into four parts, the first chapter describes the legal status of an extremely small loan companies particularity; second chapter analyzes the Bangladesh, Indonesia and the United States’experience in legal and regulatory aspects of microfinance companies and worth our reference place; the third chapter is based on the previous chapter demonstrates the necessity of the situation and the legal regulation of microfinance companies; Chapter IV proposal is to solve the problem, namely how to improve the legal regulation of small loan companies to more healthy development.