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1、 1 Abstract “Three Agricultural Problems” is the most important problem in modern economic construction of China. Its development directly impacts on the progress of national economic construction. However, the dual stru
2、cture of urban and rural finance is an aggravation issue which leads to the low coverage of financial institutions, shortage of financial supply, inadequacy of competitive forces, outflow of capital, and lots of other pr
3、oblems in rural areas. In order to alleviate the situation that poverty residents do not have access to financial services in rural financial system and farmers can hardly obtain credits, China Banking Regulatory Commiss
4、ion proposed to establish the microfinance institutions. Microfinance institutions concentrate on “agriculture, rural areas and farmers” which make them become the important component of rural financial system in China.
5、Microfinance institutions have great significance to establish new-type rural financial institutions and to improve the rural financial system. In view of microfinance institutions are still in the pilot phase, it is ine
6、vitably that they have defects which need to be improved: ambiguity of legal status, confusion of legal framework, imperfection of regulatory system, and poor ability of risk control. The imperfection of legal framework
7、of microfinance institutions leads to inadequate of function. Only eliminating these defects can protect the sound development of microfinance institutions. This paper is based on this background, abides by combination o
8、f theory and practice, guides by law orientation of microfinance institutions and propose further design scheme of legal framework of microfinance institutions. This paper begins by systematically introduce the basic con
9、tents of microfinance institution which include the universal concept, the background, the unique advantages and the types. Since the period of the development of microfinance institutions is relatively short, microfinan
10、ce institutions can be more accurately understood through introduction of the basic contents. The second part of the paper introduces the contents of deciding the law orientation of microfinance institutions. Through the
11、 general introduction and related rules of microfinance institutions, the paper discusses the specific law orientation and defects of microfinance institutions. In the third part of the paper, it uses the development of
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