Research On The Internal Control Of A Technology Small Loan Company

As an important composition of the shadow banking system,small loan company is always regarded as the one has the most similarities with financial institute.Compared with bank,though small loan company charges higher interest rate,it is boasted with speedy lending and simplified application procedure.After a development of near a decade,currently,China's small loan companies face intensive market competition.Weak links can be seen in their daily administration,which can even cause business crisis in severe condition.Problems as uneven qualities of both companies and working staff,deficiencies of companies' regulation,lack of risk management and difficulties in loan recovery still exist,while there are operational risks in business review and process control as well.Issue as how to build a better internal control system is still urgent for small loan companies to solve.Nowadays,as an emerging institute in China's financial technology innovation,technology small loan companies have already been served as significant platforms for financial technology breakthroughs.Unlike some rural small loan companies focusing on the development of agriculture,farmers and countryside,technology small loan companies provide different kinds of loans;Based on principles of offering“small and dispersed”loans,companies of this kind mainly lend micro?credit and provide venture capital investment for high technology industry park,key industry park and scientific entrepreneur groups.Based on the analysis of the current developing situation of small?loan companies in China,this paper,taking A science and technology small?loan company as an example,combined with the operational characteristics and risk management of the science and technology small?loan companies,starting from the internal control risk point peculiar to the operation of science and technology small?loan companies,develops analysis on the risk existing in company A.Moreover,it deeply investigates the common problems hidden in the internal control practices of small?loan companies,and from the five aspects ? internal control environment,internal risk assessment,internal control activities,internal information and communication,and internal monitoring,specifically puts forward optimal measures of internal control to help company A enhance the core competitiveness in the small?loan industry.Hopefully,this paper could provide some new ideas for the internal control and risk management of small?loan companies.