The Research On The Supervision System Of Small Loan Company

So far the small loan company has not been defined as a financial institution, leading to many contradictions in the application of law, supervision system, supervision measures, policy incentives and other aspects. From the aspect of supervision legal system, it is still lack of a high order, strong execution supervision law, which can help to optimize the development environment, improve operational efficiency. Besides, the service object of the small loan company is small & micro businesses and low income community, and that brings larger business risk to the small loan company, comparing with common commercial bank. Due to the imperfection of our country guarantee system and the construction of credit system, it is still necessary for government to help small loan companies strengthen the risk prevention mechanism the construction. Finally, as for the specific regulatory measures and incentive policies, there are still some shortcomings and deficiencies, which need to be improved.The paper takes the legal problems of China’s small loan company in operation as the research object, analyze and study the legal system of the supervision of the microfinance institutions in China on the basis of referencing international microfinance organizations as well as the excellent experience among various provinces, and puts forward the legislative consideration of the perfection of supervision legal system of the small loan company in our country.This paper is divided into four parts. Chapter One outlines the general problems of the small loan company. Firstly it defines the concept and characteristics of small loan company. Then elaborates development background of China’s small loan company, namely the construction of inclusive financial system, discusses the relationship between inclusive financial system construction and development of small loan company, and analyzes the important meaning in the context of the development of small loan company. Finally it puts forward the necessity to improve the supervision legal system of the small loan company.In Chapter Two, the paper analyzes and reorganizes the supervision legal system of China’s small loan company from four aspects of the general development situation, supervision law settling, supervision system and risk control. Then it introduces main supervision experience in Bangladesh and the United State in which microfinance develops maturely. Finally, it puts forward some thinking according to the comparison of the development situation and supervision system of small loans at home and abroad.In Chapter Three, based on the above two chapters, the paper analyzes some major contradictions and problems existing in the supervision legal system of the of China’s small loan company, including unidentified, supervision law imperfection, risk control system construction and other regulatory and policy issues.In Chapter Four, combining with the excellent experience of international and domestic small loan companies, the paper puts forward some suggestions on perfection of supervision legal system of China’s small loan company from the perspective of inclusive financial construction. Such suggestions include to confirm the identity of small loan companies as financial institutions, to build perfect the supervision legal system. It elaborates on the risk control issue of small loan companies from two aspects of guarantee system and credit information system construction. It also puts forward some legal thinking on perfect for access, interest rate, financing, taxation, other specific regulatory content and policy measures.