Research on the special legal status of small loan companies

Small loan companies,a special financial innovation in China originating from folk finance under special background,should belong to financial institutions whether based on existing laws or financial theories. In the existing institutional framework,the small loan company is a kind of semi formal financial institution between formal finance and informal finance. However,it is likely to be just a transitional finance form. With the reform of the system,the small loan company's status will probably be changed accordingly. In determining its regulatory system supply,we must face up to their particularities in background,legal nature and risks,and make necessary response in the regulatory objectives and specific regulatory measures.