A Research On Risk Control Of China’s Microfinance Companies

Microcredit is a system of providing financial services to low-income financialinnovation，microfinance companies is its carrier. Microfinance companies havepolicies and public welfare in our inception, poverty and shouldering the task ofproviding financial services,since being in the pilot process and cause a lot of relieffunds as loans in arrears,resulting in small loan companies afloat difficult. Of2005began to explore the commercialization of microfinance company model, exposedmany problems, many small loan companies do not have a clear legal status of itsfinancing difficulties and other issues strongly urge the government to increasesupport policies. Based on the current situation and foreign small successes andfailures of lending microfinance development company analysis，summary forChina’s development path microfinance companies.Specifically, the text consists of six parts:The introduction section, through the literature about domestic MFIssystematically combing, the relevant definitions microcredit and microfinancecompanies doing shows and describes the development of the theory changesmicrofinance，combined with the legal analysis of the existing legislation,acomprehensive domestic and foreign research results for small loancompanies,small loan companies raised the importance of internal control risk.Part I, Analysis of the current situation and development of the microfinancecontroversial issues, the views of mainstream microfinance company research stageelaborate are: status and small loan companies to locate financing problems of smallloan companies, analysis, conversion exit mechanism operating system, andinternal and external policy environment.Part II, extraterritorial small loan companies to compare and learn from.Through the extraterritorial successful models and failure modes of small loancompanies to compare, analyze our experience and lessons drawn deserve.Part III, improving our system of small loan companies specificrecommendations. This article focused on some of the academic mainstream view put forward their views and opinions, analysis results suitable for the currentdevelopment of China’s small loan companies ways.Part IV, of this thesis makes summaries and conclusions on the strength offoregoing analysis, and presents suggestions to legislations and judicial practice oflocal China.