Study On The Betterment Of Supervision Of Cash Loans

Cash loans meet the demands of long-tailed people for small loans,and have a great impact on promoting the development of inclusive finance.However,due to the long-term weakness in the supervision of cash loans,the industry risks are constantly magnified.This poses hidden dangers to social stability and the healthy development of financial markets.Therefore,it is necessary to incorporate them into effective supervision.This article includes the introduction,the text,and the conclusion.The main text is divided into three chapters,as follows:The first chapter describes the concept,characteristics,legal attributes and potential risks of cash loans.Cash loans are short-term cash credit loans which are designed for long-tailed people,with characteristics of no designated use,high borrowing costs,small amount.Analyzed from the legal attributes,cash loans belong to informal finance,and the law has not yet recognized their legal status.From a risk point of view,there are two levels of risks.One is macro-systematic risk and the other one is micro-business risk.The second chapter clarifies the status quo of the supervision cash loans and points out that China's supervision of cash loans has the absence of legal basis of supervision,imperfect supervision system,improper market access,excessive intervention in cash loans business,and insufficient protection of borrower's interests.The third chapter addresses existing regulatory issues,and proposes the thought of a shift from the regulatory supervision to the supervision for providing public goods,as well as the thought of balance of the development of non-governmental finances and the prevention of financial risks.Based on the supervisory thoughts,specific suggestions have been put forward:First,clearly giving legal status to cash loans by the regulatory legal basis.Second,improving the existing regulatory system by adopting functional supervision,perfecting the allocation of regulatory powers between the central and local governments,and giving full play to the role of industry self-regulatory management.Third,abolishing local access permission and implementing strict approval system to improve the market access system of cash loans.Fourth,appropriately relaxing the interest rate ceiling and relaxing the leverage limit to promote the development of the cash loans industry.Fifth,comprehensive information disclosure,multi-path to achieve loan matching,and the reporting mechanism for information security to strengthen the protection of borrower's interests.