Research On Legal Regulation Of Small Loan Market

Microfinance is an important way to solve the problem of capital of ordinary social members in the world.In twenty-first Century,no matter the developed countries or the developing countries,have been introduced the different types of micro credit operation models,which greatly alleviated the demand of the ordinary social members to meet the needs of survival and development.In general,micro-finance is divided into micro-finance in the public domain and micro-finance in the market area.In this paper,we should improve the regulation of China's micro-finance market as the logical starting point and the final destination of value.This paper mainly discusses the market mechanism of free trade and fair competition by regulating the relationship between the main market entities of micro credit.In 2008,after the publication of <the guidance on the pilot of the small loan company>,the local policies and supporting measures have been published by the governments and the micro credit market in China has been rapidly established.In 2015,the development of the micro-finance market reached its peak,but then there was a sign of weakness.Through the market operation of ten years,micro-finance has made remarkable achievements,but it has also produced many problems.It is mainly manifested in the lower level of the state regulated micro-credit market subject and behavior,the actual status of the various market subjects is not equal,especially the super strength of the small loan companies,and even the use of the means of super economy to operate and compete.Therefore,on the basis of fully examining the experience and lessons of microcredit market in the developed capitalist countries and the developing countries as Indonesia and Bangladeshi,this paper puts forward some suggestions on improving the legal regulation of the microcredit market in China.First of all,we should enhance the legislative rank of the microfinance markets clarify the legal status of each market entity,and the relationship between rights and obligations.Secondly,through legislation,the limits of the rights and obligations of each market subject in the small credit market are clearly defined,and the boundaries between illegal and legitimate business behavior are strictly delimited.Third,through the complete laws and regulations and the positive action of the government,we seek to balance the rights and obligations among the various subjects in the micro credit market.Fourth,standardize the market behavior ofmicrofinance enterprises,realize the legalization of the internal working process of micro credit enterprises,realize the equal competition among small credit enterprises,and realize the balance of interests between the micro credit enterprises and the credit holders.Fifth,explore the establishment of the legal norms of the group insurance system,the installment system and the dynamic incentive mechanism,so as to effectively prevent the possible financial risks in the field of microcredit.