The Analysis Of MFIs' Sustainable Development

Finance is generally seen to be a holy palace. It is also indivisible to everyone's daily life. However, it's not the facility that everyone can apply. A large number of low-income people has the demand of financial services. But only a few amount of them can obtain it.Focused on the low-income people, micro-financial institutions dedicates to providing financial services to them, helping them to engage in productive activities and build assets and increase revenue and improve the ability to cope with various risks. Microfinance can make low-income population to manage their financial lives, plan their own future lives.The World Bank's "Book About Microfinance credit" defined microfinance as an economic development approach which intends to benefit low-income women and men. And as proved, microfinance institutions can indeed play a positive role.The demand of microfinance in China is enormous. However, the number of providers are irelatively small. And most of the microfinancie institutions are lack of capacity on sustainable development,which constrain them to accomplish their social tasks.The work is pursuing to find a effective method to help the microfinance institutions to achieve sustainable development. of micro-financial institutions, This paper is divided into six parts, and the structure of the arrangement are as follow:ChpterⅠis the literature reviews, it outlines the research of microfinance and the microfinance institutions and the microfinance institutions' sustainable development.ChapterⅡis the Lay the theoretical foundation for microfinance. It defines the microfinance and the microfinance institution and its sustainable development. The main key point of the microfinance institutions'sustainable development is the sustainable microfinance services and the sustainable existence of the institution.ChapterⅢdescribes the of methods of the microfinance institutions' sustainable developing measurement. The existing method of measurement is not sufficient to measure the sustainability of microfinance institutions. The component analysis is the appropriate way to measure it. A a feasibility analysis is also conducted. After that, the process of component analysis is addressed, as well as the principle.ChapterⅣis the component analysis of microfinance institutions' sustainable development. By contrasting the sustainity score of the microfinance institutions, the key factors appears, which are consist of efficiency, financing structure of the institutions, and so on. The results showed that the score of China's microfinance institutions is low, especially the final score, which shows that an improve of China's microfinance institutions'sustainable development.ChapterⅤdescribe the reason why China's microfinance institutions are lack of sustainable development.ChapterⅥ, which is the last chapter, proposes the recommendations of microfinance institutions based on the previous description.The innovation of this paper is application of the component analysis, which is first time applied to the measurement of the microfinance institutions' sustainable development. However, the inadequate aspect is the lack of datas of single microfinance institution, which calls for the, further research.