Study On Building Of The Inclusive And Sustainable Rural Microfinance System In China

The Successful Experience of the developing countries had proven that the microfinance is an effective way to relieve the poverty and to obtain employment from 20^th century 70's.Much more attention has been focused on it, especially since 2005 named as "Year of Microfinance" by UN and Prof. Yunus won the Nobel prize in 2006. The development of microfinance in China is just few years, but it grows rapidly under the encouragement of the macro-policy and the pushing of PBC,CBSC and government since 2004.The rural microfinance is fully under way, several kinds of models have been experimented. In addition to the existing 300 NGOs, rural finance has obtained an amazing achievement.However, we also notice that lots of problems exist, for instance, a whole and effective designing on microfinance has not been presented; the NGOs and PBC's experimental Cooperatives do not have a legal status to engage in financial operations; as the only financial institution to manage the microfinance ,the Rural Credit Cooperatives have burdened too much with deep contradiction existing between commercialization and welfare on the operating of microfinance .The experimental institutions have shown some serious problems, such as the shortage of capital, lack of the effective internal operating mechanism. The state of microfinance in our country is still difficult to meet the requirement of social economy and finance development.The first chapter of the paper is the introduction of rural microfinance as well as abroad and domestic studies on it. The second chapter outlines the main experiences based on analysis of the basal models and successful practical models of foreign countries. The third chapter states the problems on CRCC's rural microfinance business based on the practice of Weifang CRCC. The forth chapter analyzes deeply the problems and factors influence the New Models of microfinance since 2005. The fifth chapter presents the designing and the way of building Inclusive and Sustainable system of rural microfinance in China. In order to improve the rural financial market, the following questions should be given priority:(l)put microfinance in the whole rural financial system; (2) various kinds of microfinance institutions coexist and realize common development; (3)according to short term and medium and long-term targets, adopt different micro and macro measures; (4) welfarism and institutionalism microfinance institutions should develop equally.