Case Study Of Microcredit Company Supervision By Sichuan Provincial Finance Office

At present, the microcredit company is a newborn thing in our financial field, which is also one of the hot issues of current private financial research field. It has important practical significance to remove the bottleneck of China’s farmers and small and medium-sized enterprise financing. As the first pilot in reforming small loan companies, from 2005, Sichuan had begun the pilot micro-credit company’s operation. In 2008, The People’s Bank of China and the China Banking Regulatory Commission Chinese jointly issued the "guiding opinions on the pilot micro-credit company”, which meant that the policy restricting the area of private offering micro-credit company was officially broken. Later, all levels of local governments gradually broadened the regulation on financial market, and the microcredit company began to enjoy the rapid development road of gathering private capital. However, because of its source of profit depending mainly on business loans and the nature of localization as industrial and commercial enterprise that credit is not only to save, consequently, they would bear very high risk in the business activities. As high management- risk enterprises, the common situation that the individual body operation is undeserved would cause “Domino” effect. Severely, it might even cause the entire financial system to collapse and directly endanger the social stability. At present, the microcredit companies have exposed many social risks in the country. the risk of the expansion trend of cumulative makes the government had to pay close attention to the level of risk. In late 2008, Sichuan Province started the microcredit company’s approval process throughout the province. However, because regulatory procedures and risk system is still not perfect, in the future exploration stage of development, accelerating the improvement of the current supervision system will undoubtedly become the premise of the microcredit company system, which can make it standardized, healthy and sustainable.The Sichuan provincial finance office involved in this paper is specially functional department to regulate microcredit company. The main part of this paper mainly regards Sichuan Province as an example to analyze, which bases on the present on the microcredit company supervision regulations and policies and related current theories of the microcredit company government regulation necessity. The research methods used in this paper include literature analysis, comparative study and the system of analogy. The arrangement of the chapters is divided into seven parts. The first chapter is introduction, which mainly states research background and the significance, research status at home and abroad, putting forward the theoretical basis of this study, research ideas and research framework. The second chapter mainly describes the case of the Sichuan Province Finance Office supervision the microcredit company, which introduces the development of small loan companies in Sichuan Province and the specific situation which financial office faced and working method carried out by financial office. The third chapter analyzes the classified supervision work. The fourth chapter mainly analyzes that Sichuan Province finance office strengthens self-discipline of the microcredit company regulation. The fifth chapter analyzes the risk prevention system established in the microcredit company’s supervision work of Sichuan Province finance office. Later, the sixth chapter is the experience and reference. Finally, the seventh chapter makes a simple summary of this paper.