Research On Microfinance Sustainable Development And Institutional Innovation

As a financial operation mode, Micro-credit provides financial services to the low-income groups in rural areas. It has two main objectives, one is assistance to financial vulnerable groups in order to achieve the goal of helping the poor, and another is promotion the sustainability of microfinance institutions. At a critical period of new rural development, our country must insist on taking the sustainability of microfinance model in promoting the development of rural microfinance. Not only requires paying attention to the sustainable development of microfinance from our heart, but also requires achieving sustainable microfinance with operating mechanism.In this paper, first of all analyze the background and the basic principles of operation of rural microfinance on the basis that summary the research on microfinance at home and abroad. The level of interest rates, risk management, cost control is extremely important factors in sustainable developing of microfinance. In order to promote microfinance institutions is able to achieve the dual objective of poverty alleviation and sustainable development, we must conduct corresponding microfinance system of innovation from the above-mentioned three aspects. Finally, on the basis of the previous text analysis, select three representative cases empirical analysis to verify these conclusions. At the end, the paper makes a number of policy recommendations for rural microfinance sustainable development from the macro-control level and the micro-operation mechanism.