Research On Legal Problems Of China’s Small Loan Companies

After ten years of development,microfinance companies(hereinafter referred to as microfinance companies)have become the main sources of funds for the majority of small and medium-sized enterprises,individual businesses,ordinary people,especially low-income groups,since they issued clear opinions and regulations in 2008.As a new type of rural financial organization,China’s micro-credit companies are mainly committed to micro-credit and financing activities.Their development goal is to provide financing conditions for micro-enterprises in the financial market.General Secretary Xi Jinping also mentioned how to solve the problem of financing difficulty and high cost in private enterprises at the recent symposium on private enterprises.In order to broaden the financing channels of private enterprises,we must give full play to the role of micro-loan companies,private banks,equity and bonds.Secondly,we should expand access to financial markets and give them more tolerant market conditions,among which the strength of microfinance companies as a "member" is immeasurable.Practice has proved that small loan companies have developed rapidly in the whole country because of their flexible management,access to the grass-roots level,making full use of private capital and meeting the policy requirements of precise poverty alleviation,coordinating regional economic development,but there are also many problems,which are not conducive to their long-term,sustainable,healthy and stable development.For example,the legal attributes of small loan companies are still unclear,many problems in operation,strict rules,financing difficulties,inadequate supervision lead to many risk problems and liability problems.Therefore,this paper comprehensively uses the comparative analysis method,literature research method and empirical analysis method to make a detailed and in-depth analysis and demonstration of the above problems.The paper is divided into four parts.The first part is the overall overview of the small loan company,mainly the definition of the small loan company,which includes the meaning,characteristics of the small loan company and the differences with other financial institutions.The second part analyses the current legislative situation of the small loan company in China,so as to find out the conflicts between the relevant legal norms and departmental documents,and find the root of the problem.The third part will be based on the national conditions of our country,combining with the small loan company in our country.Through the research and analysis of foreign micro-credit institutions,we can draw useful experience from the existing problems of loan companies.The fourth part is to solve and improve the legal problems of China’s micro-credit companies in the process of rapid development.In order to better realize the role of small loan companies in stimulating rural financial vitality,stabilizing financial markets,alleviating the financing difficulties of small and medium-sized enterprises,and expanding capital gains,so as to provide some suggestions for the establishment of a sound legal system of small loan companies.