around the in the end of the regulatory body to regulate what is not from one voice. the many problems caused by small loan companies for long gaps in regulation or supervision, to monitor the operation lost maneuverability, a mere formality. Once a new thing regulation out of whack, it will make the competition disorder, and even lead to some legal loopholes criminals drill for small loans companies, hindered its development, is not conducive to national Economic stability and development. With the pilot gradually running track, this regulatory approach needs to be further changes. 2.3 micro-credit system, risk
2.3.1 the use of funds small loans without effective constraint mechanism. The one hand, micro-credit fund management difficult, loans for household, small amount of money, credit and human and there is any credit problems. Another On the one hand, a considerable pArt of farmers to micro-credit funds free for other purposes, even as money to help the poor free of charge, on how to use micro-credit funds is the lack of technical support and confidence.
2.3.2 microfinance funds withdrawn from circulation the lack of reliable protection mechanisms. Microfinance loan recovery cases, depending on household income. Due to lack in-depth understanding of the project, the project can not be implemented as originally
envisaged, or suffered natural disasters, resulted in unsustainable losses, farmers have no way to repay the loan on schedule, micro credit funds of the mills will be difficult to guarantee.
2.3.3 the operation of microfinance lack of an effective compensation mechanism. Microfinance interest rates in China are strictly limited, the interest rate is usually lower than normal interest rate commercial loans, small loan companies which manage costs and stay high conflicting cost of bad debts, so the micro-credit operation is difficult to effective remedies. To make the sustainable development of small loan companies, the need to support the Government to provide compensation.
In addition, small loan company provides services to three rural industries and small enterprises, small-scale clients, most of them poor credit rating, poor qualifications. In practice, a number of small loans to the company's own rules and regulations are not sound, management non-standard, the staff lack the necessary expertise, in the face of the rural credit system is not a sound overall environment, to an already high risk of small loan companies even more anti-risk ability to thin out. Links to free papers Download Center 3. Promote the development of the proposed small loan company 3.1 clearly the specific nature of small loan companies
Pilot of small loan companies have been 5 years, microfinance
institutions have also announced a pilot approach for 3 years. But the community's understanding of small loan companies to reach a consensus yet. So far, small loan companies are not as financial institutions, therefore, not entitled to state a series of preferential policies for rural finance. For example, do the same rural finance, and if financial institutions, commercial banks will be included business tax relief, etc., but the small loan companies, for most provinces in that no such concessions. According to Industry sources, some small companies, including business tax credits, income tax, etc., the tax rate as high as 33%. The expectations of society and the government has the burden of microfinance institutions do not assume the light of social responsibility. nature is unknown the development of small loan company the largest risk. Therefore, small loan companies need to be clearly the nature of financial institutions.
3.2 The special legislation for the small loan company
Small loan company as a new phenomenon in China's development is still in its infancy, the Law is far from perfect, which calls for all sectors of society to create a favorable legal environment, speed up <> the introduction.
The central bank, China Banking Regulatory Commission jointly issued the <
Commission to develop the <
Should be clear in the legislation the nature of small loan companies, standard to establish a system to identify specific authority. And, in the introduction of special laws, the state should pay attention to coordination between the various laws and regulations, there are inconsistencies in its provisions should be necessary modifications, to promote the further development of small loan companies.
3.3 Strengthening the supervision of small loans company First, we must determine the company's director of microfinance regulatory body. The competent department authorized by Law subject to the company's access to small loans, the company running the operation and exit of all the regulatory process. At present, the pilot micro-credit in the country the company's regulatory body as large as the following: First, by the Finance Office is responsible for monitoring, and second, by the People's Bank is responsible for
monitoring the establishment of three new independent body responsible for monitoring and fourth, the banking supervision department is responsible for supervision. With the small the amount of loans the company gradually enriched the Experience of the pilot, the Government should monitor to measure the pros and cons of various regulatory body, legal form to be finalized, to regulate the small loan companies.
Secondly, to strengthen Industry self-regulation. Government regulation is important, but with the small loan company matures, the accumulation of experience, the Government should weaken its regulatory efforts, can play a role in macroEconomic regulation and control can be. And Industry regulation should be gradually become the main form of supervision .2011 year, China will set up a joint microfinance institutions, and its micro-credit institutions by the national nonprofit initiative established by self-regulatory organization. Its establishment is conducive to China's microfinance industry standards and can be sustainable development. microfinance institutions in the future should be based on Joint Committee on the small loan companies as the main regulatory body, to play a greater oversight role.
Third, strengthen cooperation in banking regulation and public oversight. Cooperative banks also control the operation of small loan