microfinance companies expanded too quickly in some areas

Microfinance company capital chain risk highlights. Current regulator has shut down a microfinance company in some areas through trust channel finance. It is understood that the Guangdong financial regulators are early intervention on microfinance company in cooperation with relevant financial institutions supervision to prevent fluctuations of the financial system caused by repaying the loan. Recommended readingBank channel count of the day: counting the strange coin in the world (photo) inventory: world's weirdest coins (Group) 14 credit card security: deep bottom part of development banks first mortgage rates rose 10% custodial mothers deposit not be liable to pay interest in black men equal principal repayment was blatantly stealing money in the Bank passed one-third prepayment?Small business loan companies expanded too fast yesterday journalists call the Guangdong financial regulators such as the Office was informed that the current microfinance company in Guangdong has strengthened its financial leverage and asset-liability ratio of rate regulation, the overall risk can be controlled. ����The next step is to strictly monitor their funds and to prevent funding strand breaks caused by the credit risk. Accordance with the relevant provisions,A microfinance company mainly engaged in microfinance business shall not be absorbing deposits in public, its main source of paid capital, donated money for the shareholders, and not more than two banking institutions financed funds. ����In addition, small loan company into the Fund balance from the Bank shall not exceed the net amount of registered capital of 50%. A microfinance company in charge of Guangdong in mindSaid earlier due to higher market interest rates, microfinance companies expanded too quickly in some areas, even lend to bypass the regulatory requirements of absorption of funds in many ways. According to reports, the present microfinance company registered capital of 200 million Yuan. However some companies through various channels for release after short-term financing loans of more than $ 500 million, Gearing is very high.This part of the enterprise, mainly through the "share repurchase" approach, that is, small loan company's existing shareholders to transfer ownership or to a trust company trust companies ' equity financing, trust companies issuing trust products as equity investments the old republic power leveling, trust products after the expiration of small loans to trust premium buy-ways in which shareholders of the company to honour the principal and interest. Trust companies issuing trust products collectionBenefit rates are above the 10% swtor power leveling, leading microfinance company rates are also rising. Once the market rates downward, a microfinance company claims risk is increased.