We know that the online loan business has been completely banned by the state and entered the final stage of cleaning up the mess. Of course, although it disappeared, it left unforgettable figures for the participating borrowers and lenders. In fact, during the peak period, there were 5,000 online lending institutions operating, and more than 800 billion funds were not collected, and so on, including thunderstorms, usury and beheading, all of which brought lingering pain to the people involved. Recently, the People's Bank of China released the statistical report of microfinance companies in the first quarter of this year. As of March 3 1, there were 684 microfinance companies with 69,039 employees and paid-in capital of 780.08 billion yuan. The loan balance was $865.3 billion.

Compared with the statistical report of microfinance companies in the fourth quarter of 2020, we found that the number of institutions, employees, paid-in capital and loan balance decreased in the first quarter. It is foreseeable that small loan companies have no room for imagination in the future. The period of barbaric development of microfinance companies has passed. It is easy to run a small loan, but difficult to survive. ? Last year's new micro-finance regulations directly led to the suspension of Ant Financial. The impact of the new regulations on microfinance companies is self-evident. Recently, a series of new laws and regulations have been promulgated, such as expressing a truly comprehensive annualization. Interest rate, new rules of bank collection service, inexplicable deduction, compulsory deduction, automatic repayment and other strong supervision, violent collection will be punished. The wit of some microfinance platforms will make the business space of microfinance smaller and smaller.

Due to the impact of the epidemic and the tightening of policies, we often hear the news that some online lending companies have closed down or laid off employees. Affected by usury, conventional loans and violent collection, the number of microfinance companies in China has also dropped below 7,000. The borrower applauds, of course, it can't kill microfinance institutions. They still have the function of inclusive finance, and some small loan companies must abide by laws and regulations if they want to survive.

With the increasingly fierce competition in the microfinance market, coupled with the lack of in-depth understanding of financial laws and financial risks by some companies. Extensive management, weak risk control ability, rapid rise in non-performing loans, declining profitability, and liquidity in trouble. The number of microfinance companies continues to decrease. At present, the microfinance industry is in the stage of rectification and supervision. The trend of stricter supervision will continue in the future, and the number of industry companies may continue to decline.