CBRC,the China Banking Regulatory Committee and People's Bank of China jointly delivered the "Recommandatioins on Experiment of Microcredit Company (MCC)" on May 4th. This is the official regulation on the MCC after 2 years experiment since the end of 2005.

    The regulation confirmed the guidance on MCC drafted by PBC in 2006. It requires a minimun registration capital of 5 million RMB yuan for the limited company and 10 million RMB yuan for shareholding company. There is no ceiling on the interest rate but suggests to follow the practice of the court executing. The minimun interest rate is 0.9 time of the bacis interest rate anounced by PBC.

    The regulatory authority for MCC is dicentralized to the provincial government. Instead of the county government, the MCC shall be approved by the provincial government authority.

    The regulation mentioned that the MCC can be upgraded to the Village Banks under relative regulations delivered by CBRC.

    For more detailed information, please check CBRC's website:     

    http://www.cbrc.gov.cn/chinese/home/jsp/index.jsp

    Or read the regulation in Chinese:

    http://www.cbrc.gov.cn/chinese/home/jsp/docView.jsp?docID=2008050844C6FDE83536CF44FFF6E85E5BC32C00