Research On The Government Functions In The Development Of Microcredit Companies In Wenzhou

Since 2008, the People's Bank and China Banking Regulatory Commission approved a pilot of small loan companies, microcredit companies with flexible mode of operation to obtain rapid development, increasing the overall size, plays a more and more important role in the economic and social development. Particularly in urban and rural areas, microcredit company has become the county's economic development support to ensure the supply of financing, improve the rural financial system and other aspects of an important and indispensable component. Wenzhou is the most developed city of China's private economy. In recent years, Wenzhou City, also with the actual local conditions, formulated a set of development policies, involving microcredit company initiated the establishment of access management, daily operations management, supervision and management measures, government policies, and so on.Wenzhou microcredit companies in the pilot running more than six years, has gone through the initial stage, and now in the stage of rapid development. But at this stage, the development of microcredit companies of Wenzhou City face a variety of policy factors constraints and challenges from other agencies. What small loan companies do to break the bottleneck in the development, has become the focus of concern. Where the local government as the actual manager of small loan companies, how it functioning properly, continue to guide the continued development of small loan companies, has become a very worthy of study.Based on the overview of the current research on the development of the theory of microcredit companies associated described. Then, with literature analysis, case analysis, data analysis,this paper conducted a comprehensive study of development of microcredit companies in Wenzhou City, discussed the positive role as well as the negative one of government functions in the development of microcredit companies, noting that small loan companies in Wenzhou City development has been central to the missing local organizational structure, vague legal status, lack of government presence in the supervision and disposal bits and other practical constraints and other issues. Finally, through the improvement of the functions of local government to promote the development of microcredit companies in Wenzhou City of suggestions, including the establishment of the legal system of microcredit companies, improve the regulatory philosophy and improve risk prevention system, improve the policy incentives from the policy for microcredit companies, initiatives such as the implementation of human engineering,and so on.