Study On The Government Regulation Of Microcredit Company

With the continuous improvement of China’s market economy system,the laws and regulations to ensure the healthy development of the socialist market economy have been continuously established and improved,and the non-public economy and private economy have been developing rapidly.Among them,the registered number of small and medium-sized enterprises is on the rise,which has played a positive role in the rapid development of China’s economy.However,in the development of small and medium-sized enterprises,there are many problems and external restrictions,among which the lack of fair competition,the lack of financing channels,and the limited amount of financing are the most obvious.As a beneficial supplement to China’s financial market,microcredit companies focus on serving small and medium-sized enterprises,"three rural issues" and so on.As the government attaches great importance to the role of small and medium-sized enterprises in the socialist market economy,in May 2005,microcredit companies were first set up in Guizhou,Shanxi,Shaanxi,Inner Mongolia and Sichuan provinces as pilot.Based on the characteristics of flexible operation mode and timely lending,microcredit companies were warmly welcomed by loan applicants who could not get loans from banks and other financial institutions for various reasons,which played a positive role in promoting the development of small and medium-sized enterprises.After summarizing the relevant experience of the pilot provinces and cities,the China banking regulatory commission and the People’s Bank of China jointly formulated the guiding opinions on the pilot of microcredit companies in 2008 and promoted the pilot work nationwide.Through the research,it is found that in the supervision process of microcredit companies,Chongqing government has invested heavily in the construction of microcredit supervision system and conducted different supervision on different types of microcredit companies according to their classification,ranking among the top in the supervision team of microcredit companies in China,with many achievements and experiences worthy of reference by other local governments.However,there are also some problems in the supervision of microcredit companies by Chongqing government,including unclear power and responsibility caused by hierarchical management,excessive emphasis on pre-supervision,awkward status of supervisionobjects,and insufficient supervision power.To promote the long-term sustainable development of the microcredit industry,it is necessary to constantly strengthen the government supervision centered on microcredit companies,improve the system level of supervision on microcredit companies,enhance the specialization of supervision force,and improve the social environment deeply,so as to maximize the role of microcredit companies and provide power and energy for the economic development of our city.The operation of microcredit companies is a supplement to the banking business space and plays a very important role in improving the financial services of small and medium-sized enterprises and low-income groups in China.Meanwhile,it is conducive to standardizing private lending and alleviating the financing difficulties of rural areas,small and micro enterprises and individual businesses.However,compared with banks,microcredit companies bear relatively high operating costs and risks,and face more difficulties and problems,such as unclear nature,unclear positioning,limited sources of funds,and imperfect relevant regulatory mechanisms.Failure to timely and effectively solve these problems may have a negative impact on regional finance.In this,the government must consider how to play its regulatory and regulatory role.