Microfinance companies belong to the financial industry.
The Code of Financial Institutions in 2009 made it clear that the scope of financial institutions in China covers not only traditional financial institutions such as banks, insurance and securities, but also new financial institutions such as enterprise annuities, loan companies, rural mutual funds cooperatives and village banks. Prior to this, microfinance companies were non-financial institutions.
However, some local microfinance companies are not included in the supervision of financial institutions, mainly because the CBRC has not recognized the nature of microfinance companies as financial institutions.
Extended data
According to the general definition of other non-bank financial institutions in Article 2 of the Banking Supervision Law of the People's Republic of China:
The provisions of this Law on the supervision and management of banking financial institutions shall apply to the supervision and management of financial asset management companies, trust and investment companies, finance companies, financial leasing companies and other financial institutions established with the approval of the banking regulatory authority of the State Council.
It can be seen that only other financial institutions approved by the State Council Banking Regulatory Authority can be recognized as other financial institutions in the legal sense.
Refer to Baidu Encyclopedia-Microfinance Company
Do microfinance companies belong to financial institutions?
According to the Code of Financial Institutions issued by the central bank in 2009, microfinance companies were included in the category of financial institutions and were given the position of financial institutions. However, due to the attitude of the CBRC, the central bank's release of policy signals this time did not quickly change the embarrassing position of microfinance companies. Small loan companies are still supervised by local financial offices and pay taxes according to the standards of general service-oriented industrial and commercial enterprises, which is higher than that of commercial banks.
Extended data:
According to different standards, financial institutions can be divided into different types:
1, divided into four categories according to status and function:
First, the central bank. The central bank in China is the People's Bank of China.
The second category is banks. Including policy banks, commercial banks and village banks.
The third category is non-bank financial institutions. It mainly includes state-owned and joint-stock insurance companies, urban credit cooperatives, securities companies (investment banks), finance companies and third-party wealth management companies.
The fourth category is foreign-funded, overseas Chinese-funded and Sino-foreign joint venture financial institutions established in China.
2. According to the operating conditions of financial institutions, they can be divided into financial supervision institutions and supervised financial enterprises. For example, the People's Bank of China, China Banking Regulatory Commission, China Insurance Regulatory Commission and China Securities Regulatory Commission are institutions that exercise financial supervision power on behalf of the state, and all other financial enterprises such as banks, securities companies and insurance companies must accept their supervision and management.
Is the microfinance company a financial institution?
Microfinance companies belong to the financial industry. The Code of Financial Institutions in 2009 stipulates that the scope of financial institutions in China covers not only traditional financial institutions such as banks, insurance and securities, but also new financial institutions such as enterprise annuities, loan companies, rural mutual funds cooperatives and village banks. Prior to this, microfinance companies were non-financial institutions. 1. Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. By lending to banks, centralized money and monetary funds can meet the needs of society for expanding supplementary funds for reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation. Second, the risk review of microfinance The emergence of loan risks often begins at the stage of loan review. From the disputes in the comprehensive judicial practice, we can see that the risks in the loan review stage mainly appear in the following links. (a) the content of the review is omitted, and the bank loan examiner is missing, resulting in credit risk. Loan review is a meticulous work, which requires investigators to systematically investigate and inspect the qualifications, qualifications, credit and property status of loan subjects. (2) In practice, some commercial banks do not have due diligence, and loan examiners often only pay attention to the identification of documents, but lack due diligence. It is difficult to identify the fraud in the loan and it is easy to cause credit risk. (3) Many misjudgments are caused by banks not listening to experts' opinions on relevant contents or professional judgments made by professionals. In the process of loan review, we should not only find out the facts, but also make professional judgments on relevant facts from legal and financial aspects. However, in practice, most loan review processes are not very strict and in place. Three. The legal content of the pre-lending survey (1) examines the legal status of the borrower's legal establishment and continuous effective existence. If it is an enterprise, it should examine whether the borrower is established according to law, whether it has the qualifications and qualifications to engage in related business, and check the business license and qualification certificate, and pay attention to whether the relevant license has passed the annual inspection or related certification. (two) about the borrower's credit check whether the registered capital of the borrower is suitable for loans; Check whether there is obvious withdrawal of registered capital; Past loans and repayments; And whether the borrower's product quality, environmental protection and tax payment are qualified. Illegal circumstances that may affect repayment. (3) Regarding the borrower's loan conditions, whether the borrower has opened basic deposit account and general deposit accounts in accordance with relevant laws and regulations; Whether the foreign investment of the borrower (such as a company) exceeds 50% of its net assets; Whether the borrower's debt ratio meets the requirements of the lender; (four) for the guarantee, the qualification, reputation and performance ability of the guarantor should be investigated.
Is the loan company a financial institution?
Microfinance companies belong to the financial industry. The Code of Financial Institutions in 2009 stipulates that the scope of financial institutions in China covers not only traditional financial institutions such as banks, insurance and securities, but also new financial institutions such as enterprise annuities, loan companies, rural mutual funds cooperatives and village banks. Prior to this, microfinance companies were non-financial institutions. 1. Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. By lending to banks, centralized money and monetary funds can meet the needs of society for expanding supplementary funds for reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation. Second, the risk review of microfinance The emergence of loan risks often begins at the stage of loan review. From the disputes in the comprehensive judicial practice, we can see that the risks in the loan review stage mainly appear in the following links. (a) the content of the review is omitted, and the bank loan examiner is missing, resulting in credit risk. Loan review is a meticulous work, which requires investigators to systematically investigate and inspect the qualifications, qualifications, credit and property status of loan subjects. (2) In practice, some commercial banks do not have due diligence, and loan examiners often only pay attention to the identification of documents, but lack due diligence. It is difficult to identify the fraud in the loan and it is easy to cause credit risk. (3) Many misjudgments are caused by banks not listening to experts' opinions on relevant contents or professional judgments made by professionals. In the process of loan review, we should not only find out the facts, but also make professional judgments on relevant facts from legal and financial aspects. However, in practice, most loan review processes are not very strict and in place. Three. The legal content of the pre-lending survey (1) examines the legal status of the borrower's legal establishment and continuous effective existence. If it is an enterprise, it should examine whether the borrower is established according to law, whether it has the qualifications and qualifications to engage in related business, and check the business license and qualification certificate, and pay attention to whether the relevant license has passed the annual inspection or related certification. (two) about the borrower's credit check whether the registered capital of the borrower is suitable for loans; Check whether there is obvious withdrawal of registered capital; Past loans and repayments; And whether the borrower's product quality, environmental protection and tax payment are qualified. Illegal circumstances that may affect repayment. (3) Regarding the borrower's loan conditions, whether the borrower has opened basic deposit account and general deposit accounts in accordance with relevant laws and regulations; Whether the foreign investment of the borrower (such as a company) exceeds 50% of its net assets; Whether the borrower's debt ratio meets the requirements of the lender; (four) for the guarantee, the qualification, reputation and performance ability of the guarantor should be investigated.