Research On The Development Of China Microfinance

Microfinance is one of important methods of poverty alleviation and its characteristics of broad outreach rate and high paying-off rate facilitates the effect of poor reduction. Doctor Mohammed-Yonus organized Grameen Bank, which was the successful mode for microfinance of impoverished peasant and copied by many countries and districts. It made great success for anti-poverty in the world. Since 1990s, microfinance has been introduced to China, it experienced flourish and unsmoothed development.Firstly, this thesis introduce theoretical foundation of microfinance, It is a tool providing the low-income population with financial services.Microfinance has its own characteristics. For example, it is a special financial activity because it combines anti-poverty activities tightly with financial activity,then summarizing its universal characteristics. Based on domestic and foreign scholars' studies,microfinance is divided two types: institutionalist and welfarist. The third chapter introduces some successful institutions of microfinance in the world, such as the Grameen Bank of Bangladesh, Bank Rakyat Indonesia and other microfinance institutions .The forth chapter analyse the present situation of our country's microfinance, by analyzing country policies and market demand, we find that there is enormous potential. In China, microfinance is regarded as a tool to help poor and there are four types of microfinance institutions: none-government organizations, governmental institutions , rural credit unions and commercial microfinance company, everyone has own advantages and disadvantages. Based on positive effect and profound influence of microfinance, the microfinance industry has stepped into expanding stage, but could the microfinance be a necessary supplement to finance market? The answer mainly depends on its sustainability. The fifth chapter points the present problems and provides some suggestions for the better development of our country microfinance.