What is the significance of developing non-bank financial institutions?

In the legal sense, microfinance companies do not belong to financial institutions. Microfinance companies are enterprise legal persons registered in the industrial and commercial departments, which are quite different from formal financial institutions such as banks. But in fact, except that they can't absorb deposits, the business system of microfinance companies is very close to that of banks. Li Yueru, general manager of Shanghai Baoshan Baolian Microfinance Company, said that after all the people who need loans provide business licenses, loan applications, financial certificates and other materials, they can receive loans after being reviewed by the loan review department and signing a formal loan receipt and loan guarantee contract, and then signed by the general manager and the deputy general manager in charge of lending. It is of great significance to operate financial institutions in the name of non-financial institutions.