Survey Research On The Regulation Of Small-sum Loan Companies Of Hebei Province

With the development of “Beijing-Tianjin-Hebei integration”, Hebei province ushered a great development opportunity. Small-sum loan companies play an active role in helping SMEs and promoting the development of rural finance. But the number of small-sum loan companies in Hebei Province has emerged declining growth rate.Especially, the number of loans shows a negative growth,which effects Small-sum loan companies putting money into “Agriculture enterprise” and SMEs.Government office in Hebei province is responsible for Small-sum loan companies' regulatory issue. Microfinance Association of Hebei Province, Trade and Industry Bureau, People's Bank of China, China Banking Regulatory Commission and other departments also bear the responsibility of supervision. Supervision department use the regulation form of onsite-offsite and regular-irregular. However, Government is unable to supervise the Small-sum loan companies due to the limited of government staff and lacked of professional skills. On another hand, there are a lot of supervision and management departments which will cause the problem of decentralized management. Small-sum loan companies' approval process is very complicated,and the high demand for registered capital increased the cost. However, compared to access restrictions, the operation supervision is looser. What's more, relevant policies and regulations have less effect on illegal activities than others, which can't play the role of warning.Aiming at the problems of Small-sum loan companies, this article puts forward the corresponding supervision countermeasures. First, I suggest establish Financial Service Authority by drawing on the regulation of Wenzhou. Local Financial Service Authority is responsible for managing local folk innovative financial companies, and local government finance office pay particular attention to the development of financial planning and financial poverty alleviation. At the sametime, we should build the information sharing platform, and financial service authority's task is to complete the approval work and supervision online. At the end,we had better to enact the penalties for illegal activities, thus increasing the legal deterrent force.