Study On Sustainability Of Microfinance Institutions

Since the end of the 1970s, when China introduced the policy of reform and opening to the outside world, the Chinese government has implemented nationwide a large-scale program for development-oriented poverty relief in a planned and organized way with a view to solve the subsistence issue of the poor in rural areas as its target while devoting considerable effort to all-around economic and social development. 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. Now the microfinance industry has stepped into an expanding stage, including financial institutions and non-financial institutions. But could theMicrofinance be a necessary supplement to the regional poverty alleviation? The answer mainly depends on its sustainability. This is because it is a long process for the poverty to steadily increase their income and improve their comprehensive quality, which can not be reached by offering some microfinance and technical services. So the microfinance institution should survive and develop in the long period. Considering the current situation and reality of microfinance industry in China, studying the sustainable development will be of great significance.There are five chapters: Chapter 1: Theoretical foundation and reality of microfinance institution sustainability. Chapter 2: Analysis of policy factors to the sustainability. Chapter 3: Analysis of economic factors to the sustainability. Chapter 4: International practices to prove our statement. Chapter 5: Suggestions on the sustainability of microfinance institutions in China.