Research On The Ways To Consummate The Legal System Of Small Loan Companies

Small loan companies of China formally pilotsince2005. the system not only get attention from the central to local investors favor. Small loan companies now in full swing of development in our country. According to the survey of small loan companies in rural microfinance played a small role, has made great achievements. However, the development of small loan companies are also exposed to a lot of problems, Especially the legal aspects of the problem. Laws and regulations rank is too low, the system design is unreasonable, the regulatory system is imperfect, and so on. Author problems, combined with the legal theory related with foreign experience, and made recommendations to the construction and improvement of the legal system of small loan companies.This thesis is divided into four parts。The first part introduces and explores the general legal issues of small loan companies。This section describes concept, characteristics and course of development of small loan companies, explore the legal nature of the small loan companies, Small loan companies are classified as non-bank financial institutions.The second part summarized the problem of small loan companies legal sy Introduces the three aspects of the problem. First, the legal hierarchy of our country at this stage about the provisions of small loan companies is too low, which makes the presence of small loan companies are not illegitimate, the business development illegitimate, nor legitimacy to supervise them. Second, the existing small loan companies operating legal system problems, mainly including the following aspects: the capital system and ownership structure, directors, supervisors and high qualification requirements, business scope and lending rates, credit funding sourcesrisk prevention and capital flows. Finally, the existing small loan company regulatory legal system is not perfect. This is mainly reflected in three aspects: regulatory lack of legal basis, the regulatory body is unknown, lack of regulatory capacity.The third part describes the successful experience of the foreign system of small loan companies, mainly related to the successful practice of the three countries, in Bangladesh, United States, Indonesia. Major guiding significance for the construction and improvement of the legal system of small loan companiesSmall loan companies operating on the two aspects of the legal system and regulatory legal system of small loan companies discusses. The operators legal system specifically include the following:to perfect capital system and equity structure, broaden the financing channels, to relax the restrictions of the loan interest rate, and strengthening risk prevention. Supervision of the legal system including:clear regulatory principles to establish a regulatory body, a clear regulatory elements, set the necessary auxiliary means of supervision. This part the entire paper focuses on the part to be able to build a small loan companies in China’s legal system, the general framework.