Study On The Legal Supervision Of Small-loan Company Of China

For a long time ,the financing problem has been a major obstacle to the development of the Small and Medium-sized Enterprises. On the one hand, a great number of farmers and small enterprises can not get loans from the regular financial institutions, on the other hand, a huge number of private capital turn to underground finance because they can not find a normative investment opportunity. It will lead a impact on the normal financial system of China. The emergence of small-loan company not only alleviate the financing problem of small enterprises, but also open a new road to the financial field for the majority of private capital. In May 4, 2008, the CSRC and PBOC issued "small loan company pilot guidance" as a pilot guidance to launch small loan companies nationwide. Since then, amount of small-loan companies have lunched in many parts of the country. The small-loan company is not financial institution and can not take deposit, the feature of"only credit& no deposit"makes small-loan companies into an rather embarrassing situation. The Guidance doesn't clearly define the nature of small-loan company and it doesn't give a specific design of rules for the supervision , such as the subject ,contents and measures. It makes a series of regulatory challenges, which need supervision department draft more supervision rules and improve the regulatory system to solve.This article lists two cases about the exploring path of the development of small-loan companies in Chongqing, aiming at leading to a discussion about the new ideas of regulation of small-loan company. The first part describes the emergence and development of small-loan company. Illustrating the importance of small-loan company in alleviating small enterprises'financial problems and building the inclusive financial system; The second part describes the general theory of small-loan company supervision and the successful supervision experience of foreign countries. The third part describes the supervision history and supervision practices of China's small-loan company. Illustrating that there is some problems in small-loan company's supervision of China, such as unclear nature, confusing regulatory body, low rank rules, absence of risk prevention; The fourth part makes some recommendations for these problems: China should develop a higher rank of the regulatory norms, reducing misunderstanding of the nature of the small-loan companies, improving the enforceability of norms. At the same time we should improve the specific measures of supervision, making a good legal basis for the regulatory activities. Improving risk prevention system by making regulatory rules. Improving credit guarantee system. We could also learn from successful experience of the securities industry regulator and establishing industry association, enforcing the implementation of industry self-regulation.