The Code of Financial Institutions in 2009 made it clear that the scope of financial institutions in China covers not only traditional financial institutions such as banks, insurance and securities, but also new financial institutions such as enterprise annuities, loan companies, rural mutual funds cooperatives and village banks. Prior to this, microfinance companies were non-financial institutions.

However, some local microfinance companies are not included in the supervision of financial institutions, mainly because the CBRC has not recognized the nature of microfinance companies as financial institutions.

Extended data

According to the general definition of other non-bank financial institutions in Article 2 of the Banking Supervision Law of the People's Republic of China:

The provisions of this Law on the supervision and management of banking financial institutions shall apply to the supervision and management of financial asset management companies, trust and investment companies, finance companies, financial leasing companies and other financial institutions established with the approval of the banking regulatory authority of the State Council.

It can be seen that only other financial institutions approved by the State Council Banking Regulatory Authority can be recognized as other financial institutions in the legal sense.

Refer to Baidu Encyclopedia-Microfinance Company