Legal Mechanisms For Risk Control Of Micro-credit Companies

Since the introduction of microfinance in Bangladesh form of practice in our country for many years, in May2008, the China Banking Regulatory Commission, the People’s Bank of China jointly issued "on the micro-credit company pilot guidance ", the micro-credit company finally enterprise forms in the country showing explosive growth.From the preliminary stage when the micro-credit company was introduced,it has burdened with poverty alleviation task, and played a positive role in the develo pement of "three rural". However, all the time, the micro-credit company in our co untry is established as a LLC which engages in microcredit instead of absorbing pu blic deposits, so the legal risk control mechanisms show many problems, their sustainable development has encountered many obstacles.This micro-credit companies from legal risk control mechanism starting from abroad in research and effective way, based on the recommendations in the micro-credit companies the basic principles of market-oriented operation, the release of its unnecessary and unreasonable control at risk under controlled conditions, proposed a series of operational risk control methods for its continued development has injected vitality to continue to provide the rural finance and support for small and micro enterprises.The first part of the introduction, background and significance of the main topics discussed, reviewed the issue of domestic research methods and trends, and explain this major research methods.The second part analyzes the development of micro-credit companies and the major risks them facing. Including credit risk, market risk, operational risk, liquidity risk and its causes.The third part from the domestic research and analysis of micro-credit companies raised their risk control current situation and existing legal mechanisms for the core issues, namely identity positioning is not clear, narrow channels of financing, risk compensation mechanism for lack of internal risk control mechanisms are inadequate and so on.The fourth part, respectively, compared with the developed countries from developing several typical microfinance model and its development process, extract the relevant risk control rules and practices, summed up the experience for reference, from welfarism to institutionalism changes in regulatory clear policy support, credit support access to information.The fifth part in accordance with the third and fourth section analyzes the main risk control at home and abroad on the basis of legal mechanisms for micro-credit companies in our present problems, put forward a sound legal mechanism for risk control recommendations.