Operation Mode Analysis Of Micro - Credit Companies In China And Policy Suggestions

In the 70's last century, Dr. Yunus founded the Grameen Bank in Bangladesh and has achieved tremendous success, micro-credit theory has attracted wide attention. In the 90's, micro-credit was introduced into China ,after 20 years ,micro-credit got great developments. In 2005, the CBRC and the People's Bank decided to start small loan company pilot in Shanxi, Sichuan, Shanxi, Guizhou, Inner Mongolia five provinces . With the first batch of seven pilot small-loan success of the company operations, in 2008 and the People's Bank of China and the CBRC jointly issued the company regarding the development of micro-credit pilot guidance, after which micro-loan companies have mushroomed emerged across the country.For improving rural finance and help SMEs solve their financing difficulties , small loan companies were born by the attention of government, scholars and relevant institutions . Therefore, small-loan company's research, either in theory or in fact in terms of reality, are very important.In this paper, micro-loan companies is the research object, starting with small loans company's definition, and a detailed analysis of micro-credit companies'policy background, and comb the company's development process Then on this basis, a detailed analysis of small-loans company's business model, mainly from micro-loans to the company's nature, the utilization of funds, target selection process and other nine aspects, which focuses on analysis the necessary of small-loans company's high interest rate, as well as the processes of micro-credit . On this basis, I analysis the facing problems of small loan companies, mainly reflected in: external problems, sources of financing, tax burden, lack of legal protection; internal problems, identity is not clear, the lack of supporting personnel and risk control systems. And then to the micro-credit company's current market environment, a detailed SWOT analysis, combined with the success of micro-credit model - the successful experience of Grameen Bank in Bangladesh, give the policy recommendations for the company's development.