Research On The Role Of Small Loan Company Under The Financial Repression And Deepening Theory

The development of Small Loan Company(SLC) shows that the process of financial deepening is slow and complex. The appearance of SLC was definitely a positive result of financial deepening and will be beneficial to the whole finance system. As an important channel for private finance formalization, the SLC could facilitate both the private capital flows and the real economy development. As well, it will be a good financial choice for SME, rural economy, individual business and low-incomes in cities. However, in the process of financial deepening, the SLC was impeded by old regime such as market regulation, social consensus, and outdated policies. Especially, the entrance prohibition for formal financial system, was the important reason for the SLC industry dislocation.In the transition of financial repression to financial deepening and in the background of peculiar contradictions and conflicts, the research of SLC relocation analysis has a unique meaning. Firstly, the dissertation try to make reasonable market position to SLC,and make a differences of small loan for public service and non-public service. On a sustainable basis of maintaining the former operating, we make SLC stepwise "rotation plate" top-level financial system design to achieve mutual integration of financial inclusion and profitability. Based on foreign experiences, we explore the optimal path for the development of SLC. And based on the research on small loan company pilot case, we make some suggestions and thus indicate the overall direction for the development of SLC.The dissertation is composed of six chapters. Chapter one is an introduction of this study and describes the research background, research significance, literature review,research method, innovation and shortcomings. Chapter two is the theoretical basis and contains financial repression and financial deepening theory, functional finance theory,which laid the theoretical foundation for the full text. Chapter three analyzes SLC origin and international comparison, which introduces company profile from the origin, location and status of SLC, and we compare to the foreign SLC to acquire experience. Chapter four describes SLC’s "functional dislocation" in the financial repression and introduces financial repression and its expression, and analyzes SLC dislocation from the view of the functional dislocation, regulation dislocation and the effects of SLC dislocation onfinancial resources allocation. Chapter five is SLC relocation in financial deepening background, and analyzes new changes during financial deepening in domestic financial system, SLC’s multi target selection in the context of financial deepening, and finally make policy recommendations for re-positioning of SLC. Chapter six concludes the dissertation,and discusses the future research directions.There are three main innovations of the dissertation. Firstly, we study the re-positioning of SLC in the process of financial repression to deepening, and the research object is the position of SLC based on the development of financial repression and financial deepening of SLC. There are some differences from other papers from the research perspective. Secondly, the dissertation follows the "Financial deepening-Financial repression- financial deepening" progressive spiral deep logic. The starting point is the financial deepening of SLC, and study the position and the expression of financial repression development of SLC. Thirdly, we make some system design of “rotating plate”of SLC, and achieve mutual integration of financial inclusion and sustainable management to further deepen the financial repositioning of SLC.