A Study On Sustainable Development Of Microfinance Institutions In China

As a new approach of poverty alleviation through credit,the emergence of microfinance service which is primarily offered in the form of microcredit is a result of continuous innovation on traditional means of poverty alleviation.Microfinance attracted the worldwide attention and was promoted furthermore after Professor Yunus's winning the Nobel Peace Prize in 2006. Grameen Bank,BRI and BancoSol bank give us a lot of successful experiences,which have not only lent successfully to large numbers of low-income people and microentrepreneurs,but have done so sustainably.The operating model of Grameen Bank was the first model we applied. Though the present microcredit service in practice gives strong support to help the poor and improve their life to a certain extent,the present microfinance institutions are unable to achieve financial sustainability for the reasons that most institutions are still at the preliminary stage, which makes them unable to continuously provide credit and comprehensive service for the poor and thus have limited function on regional poverty alleviation.Therefore,it's meaningful practically to explore and study the sustainability of microfinance institutions in China.Among lots of methods to study the sustainable development of microfinance institutions, the thesis adopts the popular point of view of international academics that financial self-sustainability is the most important characteristic for sustainable microfinance institutions. Based on this theory,the paper proposes some suggestions on sustainable development of Chine microfinance institutions after analysis of internal and external factors that have effects on sustainability.The paper is divided into 5 chapters as follows:Chapter 1 is the introduction which embraces background,purpose of the research and theoretical development,the framework and method of research also included.Chapter 2 elaborates on the concept of sustainability of microfinance and provides a series of indexes to evaluate the sustainability,then points out the macro- and micro- significance of sustainable development of microfinance institutions.Chapter 3 introduces some successful organization of microfinance worldwide and analyzes their use for reference for launching our microfinance practice.Chapter 4 reviews the historical development of China's microfinance,introduces its current conditions and then analyses the feasibility,potentials for the substable development of present microfinance institutions and factors that restrict the sustainable development in China.Chapter 5 which is also the last part of the thesis puts forwards some suggestions of approaching sustainable development of Chinese microfinance institutions from an internal and external perspective.