The Research On Supervision Of Microfinance Companies In China

In the new round of rural financial reform background, financial organizations in rural areas reformed gradually from the "stock type of reform" into "incremental reform",showing a trend of highly rapid development. The emergence of microfinance companies, As a new type of rural financial organizations, eased the pressure of "three rural" and microfinance companies financing and played an important role on achieving our goal of inclusive finance. However, there have been many problems in the process of development. Although China’s regulation on microfinance companies have made some efforts, but there are still some serious problems. The problem such as ambiguity of regulatory body of microfinance companies, lacking of necessary rules,regulations and sound regulatory prominent legal system and regulatory resources has become increasingly evident, resulting in the difficulty of monitoring a direct impact on the development prospects of microfinance companies. From the country’s national conditions, based on the analysis of the current situation of microfinance companies, this paper drawn on Asia and South America’s successful experience and analysed the regulatory status of microfinance institutions. This paper analysed the necessity of regulation of microfinance company from the perspectives of theory and practice respectively. According to credit feature of China’s microfinance companies, based on the prudential supervision of international and non-prudential regulation modes, this paper choosed the more suitable modes for China’s development of non-prudential regulation, analysed relavent reasons and put forward relevant suggestions. We should identity of microfinance companies and regulatory body, improving the supporting laws, regulations and market exit mechanism and enriching regulatory means for non-prudential regulation as a concept, developing core regulatory standards, improving the regulatory environment, enhancing supervision efficiency and other measures to make our microfinance companies to achieve scientific development.