Research On Risk Control Of Micro-Credit During The Economy Transition Period

Chinese economy grows fast and socialist market economy is being completed gradually, which requires matched finance system. The coming into being of micro-credit system is a result of capital accumulation and inclusive finance. This paper will introduce the risk of micro-credit and analyze the legal supervision of micro-credit at present from a new perspective of risk control, in order to resolve the risk behind the idea of human rights, efficiency, and inclusive finance.Micro-credit collection system is necessary with the purpose of guarding against risk, and then the administrative regulation is not only loose but also strict at first. Secondly, the government would better deregulate interest rate and adopt preferential policies on taxation. On one hand the government should adopt classification supervision, on another hand consumer should establish the concept of maintaining legal rights. Meanwhile, social environment, stable data supporting system and reasonable guidance of public opinion are also effective. On account of inevitable dispute, the judicial dispute resolution is very important. Firstly, independent finance consumer protection committee is precondition and professional finance arbitration acts as intermediary. Secondly, civil court subdivides dispute resolution process. Thirdly, criminal law serves as the last safeguard. Then the dispute will be resolved.In a word, the objective fact we never shy about is that micro-credit may trigger risk as new financial activity, but we should see the system function and social benefits behind the huge risk. Giving up eating for fear of choking is not desirable as well as the heel-dragging. The micro-credit will play a big role in society and economy as long as we study risk comprehensively and withstand it. As a result, micro-credit could help the poor, activate capital and form developed finance system.