Research On The Problems And Countermeasures Of Municipal Level Government Supervision Of Micro-Credit Companies

As the main body of loan issuance,Micro-credit companies are financial institutions that play a complementary role in addition to the orthodox banking financial institutions,which mainly make up the blank areas of loan issuance business of banking financial institutions and alleviate the financing difficulties of farmers and small and micro enterprises.However,Micro-credit companies also have the characteristics of small scale,high risk,nonstandard,etc.,and they have special risks at the beginning of existence.The government supervision of Micro-credit companies adopts the mode of provincial,municipal and district level supervision.Although it has been constantly revised and improved,there are still many imperfections,especially the related research focuses on the national and provincial levels.Therefore,this paper takes the prefecture-level city Y as an example to discuss the municipal level government supervision of Micro-credit companies,which has certain theoretical and practical significance.Based on the comprehensive analysis of the background and research significance of related topics and the research status at home and abroad,this paper comprehensively uses the methods of literature research,policy research,case study,etc.,and expounds the relevant theories of government supervision of Micro-credit companies in detail.Based on the investigation of the municipal level government supervision of small loan companies in Y city,this paper summarizes and analyzes the problems existing in the supervision of small loan companies by the financial supervision departments of prefecture-level cities,and the causes of these problems,so as to put forward the countermeasures to improve the government supervision of small loan companies in prefecture-level cities.Through the analysis of the supervision of small loan companies in Y city,it is found that there are four main problems in government supervision,namely,overlapping functions of supervision departments,insufficient supervision power,insufficient supervision means and poor exit mechanism.There are three main reasons for these problems: first,the regulatory laws are incomplete;second,the policy support is imperfect;third,the effect of industry self-discipline is not obvious.Based on the analysis of the problems and causes in the government supervision of small loan companies in Y city and the current development situation of small loan companies,this paper puts forward some countermeasures to improve the government supervision of small loan companies: first,improve the government financial supervision system by perfecting the supervision institutions,enriching the supervision power,strengthening the rectification of local financial markets and cracking down on illegal lending activities;second,straighten out the supervision mechanism by clarifying the responsibilities of the cooperative supervision departments and perfecting the exit mechanism of small loan companies.The third is to optimize the supervision by relaxing interest rate restrictions,broadening financing channels and improving risk mitigation policies.The fourth is to make positive guidance and supervision parallel by strengthening the guidance of "micro" and "agriculture,rural areas and farmers" loans,coordinating the access of Micro-credit companies to PBOC credit information,urging Micro-credit companies to strengthen internal management and encouraging industry self-discipline.