Research On Government Supervision Of Microcredit Companies In Shenzhen

Microcredit companies are an important channel for the legalization of private finance.They can solve the problem of funding gaps for small and medium-sized enterprises and individuals.They can also vigorously support the development of “agriculture,rural areas and farmers” and can also seek investments with lower risks and moderate returns for private capital.channel.At the same time,it can effectively solve the employment problem of talents in the financial sector,have certain social and economic benefits,and also greatly supplement the status quo of China's economy to develop inclusive finance.In recent years,China's microfinance and its institutions have grown vigorously from scratch,especially in 2009.According to data from the China Association of Microfinance Companies,as of the end of 2017,there were 8551 microfinance companies nationwide.The loan balance was 977.9 billion yuan,an increase of 50.4 billion yuan in the whole year.With the flourishing development of the microfinance industry,the problem of unfavorable supervision of small loan companies has become increasingly prominent.On the one hand,it brings about some hidden funding risks for fund providers,and on the other hand,it casts a blind eye on the healthy and sustainable development of inclusive finance.Shadow,therefore,government regulation of microfinance companies has become a necessary regulatory measure.It is of great practical significance to improve the government supervision of small loan companies.The business nature of microfinance companies is financial services,and the People's Bank of China has recognized the nature of its financial institutions.It is consistent with the connotation and extension of financial institutions,and the attributes of financial institutions of small loan companies can be determined.Microfinance companies originate from non-governmental finances.Because they are not approved by financial regulatory agencies and are not subject to the regular supervision of financial regulatory agencies,they are not part of formal finance.Therefore,they are semiformal financial institutions located between formal finance and private finance..At the same time,the background and risks of microfinance companies are unique.They cannot simply apply the regulatory rules that currently apply to formal financial institutions,and they must be equipped with appropriate regulatory systems based on their specific characteristics.At present,the government supervision of small loans in Shenzhen has problems such as poor coordination among various government supervisory departments,overly stringent regulatory systems,imperfect supervision methods,the need to improve the quality of supervisors,and lack of internal risk prevention and control mechanisms.Perfecting the government supervision of microfinance in Shenzhen should proceed from the following aspects: improving the regulatory body of microfinance companies,improving the regulatory system for small loan companies,diversifying the regulatory instruments,improving the overall quality of the supervisory team,and helping and supervising internal risk supervision and Industry self-discipline.