Hunan Rural Micro-finance Organizational Development

Rural financial development has already been an elementary tool for "Agriculture, Rural areas and Peasantry" development, simultaneously, it is the key domain for modern financial size,structure,efficiency to improve itself, and be mentioned several times in various ways on Central Government No.1 Document. However, for many years of financial repression, it is difficult for rural financial development to change from its original way. So for based on the current foundation and to built a diversification and multilayered rural financial system, the Central Bank and CBRC (China's Bank Regulatory Commission) has launched several Guiding Opinions during 2006 to 2009,to encourage new type of financial institution to participate in rural area.While enter into the rural financial market extensively, the small financial institution has to exert its own predominance and specialty, to lay a solid foundation for the Inclusive Financial System.The essay is focus on this upsurge of rural finance, established in the history development and present situation of small rural financial organization in Hunan Province. Initially, elaborated the relevant theory of rural finance, and combined with the experiences and suggestions in foreign countries, analyzed small rural financial organizations qualitatively and quantitatively. In qualitative analysis, the author analyze the situation of small financial organization in Hunan Province from angles of history development and current situation, making a comment on the merits and defects; Quantitative analysis based on the pre-designed indicator system for small financial organization development, using AHP-Method to give each indicator the corresponding weight coefficient, mainly measuring the size,structure,efficiency and the overall level of development of small financial organization in Hunan Province during the decade (2000-2009). Then lateral comparison the other three provinces: Hubei,Henan,Anhui under the same indicator system, and comparison with the average score of the best financial ecological environmental province--Zhejiang to evaluate each provincial small rural financial development.Finally, the essay sum up from aspects of theories,experiences of foreign countries,the analysis of qualitative and quantitative, established the general thought of future development concerning small rural financial organizations in Hunan Province, and suggesting the specific strategies in aspect of macro-policy,micro-institution and relevant safeguards system。...