Legislation Research On The Supervision Of Small Loan Company In China

Under the background of China's financial system reform,microfinance companies have emerged as a model for poverty alleviation.This is an attempt under market-oriented finance and a feat for China's financial innovation.Since the small loan companies initially entered China in 2005 and started pilot projects in five provinces and regions,the development of microfinance companies has been thriving.It provides a key source of funding for the development of small and medium-sized enterprises and agriculture and animal husbandry in our country.In a certain sense,it has advanced the process of deepening the reform of China's small and medium enterprises and agriculture and animal husbandry.The development of microfinance companies has effectively circumvented the disadvantages of the illegalization of private lending,the high risk,and the risk of uncontrollability and letting private capital move toward a legal and formal direction.However,at present,the development of microfinance companies has also exposed various defects.In terms of the number of institutions alone,the number of microcredit companies has increased rapidly each year since the regulatory system for all aspects was just established before 2014.In the past two years,with the establishment of some regulatory systems,the number of companies has started to decline.This kind of development is in the final analysis: first,there is no sound legal system for the supervision of small loan companies;second,the existing legal system is the establishment and withdrawal of small loan companies,regulatory bodies,and some specific legal content.There are irrational aspects in other areas.Therefore,the country needs to establish an effective supervision system.While establishing a special microcredit company supervision law across the country,according to their own circumstances,the provinces and regions will formulate regulatory laws that are appropriate for the local characteristics,therefore changing the legal status of existing related systems is low.Only in this way can micro-credit companies grow under the "sunshine" and grow under the law and regulations,become mature institutions in the market financial system.This article first analyzes the significance of researching the legislation of microfinance companies,reviews the domestic and foreign literature review on microfinance companies and their supervision,and analyzes the research status of microcredit companies' development and regulatory systems at home and abroad.Next,the theoretical basis for the study of the regulation of microfinance companies includes the public interest theory and financial supervision trade-off theory,which lays a foundation for the next study on the supervision of microfinance companies.Then,taking the first pilot provinces and five provinces as representatives,starting from the three aspects of business operations,funding sources,and risk management,the status quo of their development is analyzed,which leads to the status quo of the regulatory system for small loan companies.Judging from the current regulatory situation,China has not yet established a regulatory law on small loan companies.The existing guidelines are only "Guiding Opinions on Pilot Projects for Small Loan Companies." An in-depth analysis of the problems in China's legal system for supervision of microfinance companies concludes that,overall,the legal system is imperfect.Specifically,the regulatory bodies are not clear and the regulatory capacity is low,there are flaws in market access and exit standard design,and other laws.Content is irrational.Through the analysis of the status quo issues,we can see that it is very urgent and necessary to supervise the legislation of small loan companies.Finally,by referring to excellent foreign experience and targeting the issues of China's microfinance companies,we propose legislative proposals that are consistent with our country's characteristics in the supervision of microfinance companies.From the macro perspective,the regulatory system for the supervision of micro-credit companies in China has been improved.On the micro level,a clear professional supervision body has been established,reasonable market entry and exit standards have been formulated,and unreasonable legal content has been amended.