Study on the credit risk mitigation techniques of small loan companies

The small loan company is an emergent novelty for the Chinese credit market. The basic function of it is the financial intermediary which provides important services to some private sectors of the China economy. But as a new-born business, there are no systematic research on it and lack of effective supervision as well. This study investigates the credit risk mitigation techniques and features of financial service constitution, time distribution, and risk management. The results indicate it will continue to play an important role in China credit-system.