Research On Exit Issues Of Small Loan Company In China

Small loan company as an indispensable part of multi-level capital market, it is important for the settlement of small、micro-enterprises and farmers loans difficulties, after experiencing 10 years of extensive development, a large number of small loan companies faced the risk of market exit. In this paper. As a quasi-financial institutions, there are a lot of externalities when small loan companies exit of market. A wide range of market exit will cause local financial crisis and have a major impact on the real economy. Therefore, the establishment of small loan company improve market exit mechanism and minimize the cost out of the market, which is important for the small loan company healthy and sustainable development. Through compile the small loan companies market exit situation, analyze the reasons for exit and combine with domestic and international research, I propose the establishment of a sound system of small loan companies to exit the market,this paper argues that a perfect market exit mechanism system include:sound risk warning mechanism, appropriate relief measures, comprehensive market exit way and strict legal system. Besides, combined with a small loan company, this article focuses on the specific content of this four-part.the cause of microfinance companies exit the market divided into internal and external reasons. There are three internal reasons that Shareholders biased understanding of small loan company’s positioning and not found its own profit growth point. The company’s business type is single and lack of innovation, risk management level needs to be strengthened. The external reasons are complex policy issues and lending market environment.From reality, The improvements of the small loan company market exit mechanism are divided into macro and micro suggestions. Macro recommendations include market-based decide microfinance company to exit the market, maximize the overall efficiency of society as the principle to decide whether market exit. Microscopic recommendations include:the establishment of microfinance companies delisting risk warning mechanism, the establishment of market exit buffering mechanism-ordered to stop, exit innovation, establish a strict market exit process, specifically small loan companies market withdrawal regulatory body, improve microfinance corporation Quit legal system.