On The Legal Supervision To The Small Loan Company In China

Since the creation of small loan company, whether it is the financial institutions has been controversial. The nature of financial institution of small loan companies has a decisive influence on supervision institution and mode. The business of Small loan company is financial business, the people's bank of China approved the nature of financial institution, connotation and denotation of small loan compayare consistent with financial institutions. As a result, the nature of financial institutions of small loan company can be determined. Small loan companies from the folk finance, but in " guidance of small loan company pilot " as the core of institutional constraints, it has lost the irregularity of folk financial basic characteristic; Because the financial regulatory approval to set up and not governed by the routine of the financial regulators, do not belong to the formal financial, so it is between formal financial and private financial half a formal financial institutions. At present, the supervision system for access and operation restrictions constrained the development of small loan companies. The existing regulatory body is mainly composed of three departments, including competent departments, daily supervision department, and participate in the supervision department. Main supervision methods contain: give priority to administrative and compliance regulation, strict market access and business operations, market exit regulation is simple, a serious shortage of self-discipline and social supervision, regulators bull, and rights, the right to check the audit and the separation of administrative punishments. At present the regulatory effect of small loan company from to achieve the goals of efficiency and two ways to achieve the goal of safety exists efficiency is low, the safe hidden trouble is bigger. For small loans company regulation can be summarized as three points: the influence of traditional government regulation of financial, institutional change and the improper value balance. To improve the supervision legal system of small loan company should first clear regulators, established the China banking regulatory commission as small loans company regulators. In addition, should improve the system of access to microcredit company regulation, to establish a reasonable access standards, to establish the qualification certification or exam system, clear small loan company set up branches of the program. Finally, should improve the system of small loan companies operating supervision, refinement of small loan companies incorporated in the credit reporting system, the relevant provisions of the loan reserve fund system and establish small loan company credit rating system.