Discussion On The Sustainable Development Model Of Hangzhou Small Loan Company

As a product of local financial innovation, micro-credit company is a useful attempt to encourage and guide the private investment in health development and the private capital into the financial market. In 1990 s, China firstly introduced the micro-credit model to support the poor. In 2005, the PBOC(People’s Bank of China) and the CBRC(China Banking Regulatory Commission) took the lead to carry out a pilot work of micro-credit company in Shanxi, Shanxi, Sichuan, Guizhou, and Inner Mongolia. In May of 2008, the PBOC and the CBRC jointly issued guidance on the pilot work of micro-credit company; Hangzhou established its first micro-credit company, which makes a great significance for constructing a regional financial service center and a multi-level capital market, relieving small and micro businesses and a shortage of funds on the issues of agriculture, farmer and rural area, as well as supporting its own development.Even though the pilot work steadily pushed forward, micro-credit company also commonly experienced “growing pains”. On the basis of theoretical research, this paper puts forward the current market position, capital source, business model, risk management and internal governance of the micro-credit companies in China. Furthermore, it takes the business development situation of the micro-credit company in Hangzhou as an example to analyze the company’s current conditions and features. This paper discussed the sustainable development modes of micro-credit company by data, statistics, case and analysis. affirms the commonweal and innovation of micro-credit company, and analyzes the feasibility of its innovation and development, both of which lay a theoretical foundation for its development.The paper is divided into five chapters, the first chapter focus on analysis of micro-credit classification, micro-credit risk control, performance evaluation of micro-credit and micro-credit sustainable development research. The second chapter, starting from the definition of micro-credit, introduces the research situation of micro-credit at home and abroad. The third chapter describes the basic operational situation of the micro-credit company in Hangzhou.The fourth chapter presents the difficulties encountered in the development process under the current national conditions. The fifth chapter makes a comparative analysis of several sustainable development modes, after which puts forward some proposals of sustainable development modes corresponding to the micro-credit company’s self construction and policy support.