小额贷款 Small loan company in China Legal Problems and Sugg

Small Loan Company in China Legal Problems and Suggestions for Improvement

[Abstract]: In recent years the company gradually developed microfinance. In our economy on the specifications of its private capital, and promote Economic Development has a positive meaning. But because of its still in trial stage, the current number of small loan companies on the basic provision or provisions of the problem is still not yet unreasonable. there are still some legal issues: the creation of the high threshold, the regulatory body is not clear, low risk control. This will become a bottleneck restricting its development. In order to promote small loan company healthy and sustainable development, favorable to the Development of small loan companies recommended: small loans for the Development of the company to create a good legal environment, specifically the regulation of small loan companies and improve their own small loan company risk control capability.

[Keywords]: small loan companies, legal risk, regulatory body In 2005, the small loan company in Inner Mongolia, Shanxi, Shaanxi, Guizhou, Sichuan Province, five May starts .2008 CBRC, the central bank jointly issued <\the small loan company pilot guidance>>, small loan company the rapid Development of a trial

basis in April In 2009, China Banking Regulatory Commission issued a <> the small loan company pointed out the direction. As of the end of October 2010 has set up a small country Loan Company 2348. After several years of practical work, small loan companies made a good social effect in improving rural financial services, to resolve the difficult problem of SME financing has played a positive role.

1. The status of small loan companies

1.1 The nature of small loan companies and structure

Microfinance refers to the lower-middle class devoted to the continued provision of micro-credit services activities. Small loan company, is defined as natural persons, legal persons and other social organizations, enterprises invested in, does not absorb public funds, small business lending limited liability company or limited. Small loan company is the enterprise legal person, independent of the corporate property, and all the property of their Civil liability for its debts. Microfinance assets of the shareholders entitled to return to their rights and right to participate in major decisions and select the right managers, its subscribed capital contributions or the extent of its subscribed shares of the company responsible.

Small loan companies should implement the country's financial

policies and financial policies, laws and regulations to the extent permitted business, autonomous, self-discipline, self-financing, at their own risk, its legitimate business activities protected by law. 1.2 The significance of the existence small loan company Small loan company to solve some small, scattered, short-term funding needs, is designed specifically for SMEs in rural and lending companies. The existence and development has a vital role and significance. Mainly in the following areas: First, the small loan company has a flexible mechanism, simple procedures, without charge, without collateral, lenders and other commercial banks faster incomparable advantages to better serve rural and small and medium enterprises to provide financial loans to solve their survival and development the process of financing difficulties. Secondly, the existence of small loans help ease the company to attract private capital to address the credit chaos of Civil status, to achieve formal financial transition to private finance. Third, to the intensification of poverty, and promote rural Economic development and prosperity and stable development of socialist society. 2. Small loan companies are the main legal issues

Small loan company achieved explosive growth in recent years, China's credit market is an important pArt and added strength. But there are also some of its business legal issues.

2.1 The establishment of small loan companies there are legal loopholes

China Banking Regulatory Commission and the central bank's <\the small loan company pilot guidance>> states:\The Application for the establishment of small loan companies, government departments should make a formal request for approval to the local administrative department for Industry and commerce to apply for registration procedures and obtain a business license. \qualified small business loans approved in the company as an administrative permit. with <> requirements to enable the legal basis for the lack of administrative licensing. Since, by << Administrative Licensing Law>> was set up by the main body of the administrative licensing should be laws, administrative regulations, local regulations, if the above subject are not required, do need to immediately implement an administrative license, can the provinces, autonomous regions and municipalities to establish rules and regulations temporary administrative licenses. small loan company only by the < \determine the administrative licensing is the lack of legal basis.

In addition, the establishment of small loan companies high threshold. According to the provisions of small loan company the main sponsor of the \assets of not less than 5,000 yuan (less

developed counties of not less than 20 million yuan, asset-liability ratio no higher than 70% , consistent earnings and a total profit of 1500 million (a minimum of 600 underdeveloped counties yuan \the company provides small loans to ensure risk control ability, but to discourage a lot of investment intermediaries. This leads to a lot of intangible investment intermediaries transformation in the direction of the underground banks, which will be detrimental to our financial stability and development.

2.2 The regulation of small loan companies is not clear

<> said \who can clear a provincial government authorities (Office of or related financial institutions) is responsible for the supervision of the management of small loan companies, and small loan companies willing to take responsibility for risk treatment, only in the province ( regions and municipalities) of the county set up within the context of small loan company pilot. \company that is designated by the provincial government's Provincial Financial Office or relevant agencies responsible for supervision and management, and bear the possible loss of the pilot failed, but the above do not have the qualifications of the main administrative body. In practice, the \is what agencies, so far, there is no a clear legal provisions for this. Moreover, the lack of a unified scientific regulatory standards