Commercial Microfinance In China's Path Analysis

It is an important problem for the development of the rural economy that how to provide financial services to the farm households. And it is also a challenge for the governments in all countries. The practice and development of microfinance offer a bran-new thinking for solving this problem according to international experience. It doesn't perform an important function due to the influences of many factors, though it has developed for about more than ten years in China. From this background, based on the related theories of microfinance and main problems during the microfinance development, we can get a win-win situation—combination of policy goals and commercial objective, proved by achieved the commercialization of microfinance.The main structure of this paper can be divided into three parts, the first part is the chapter of theoretical basis for research. We firstly introduced related background and researches about the microfinance development at home and abroad. The second part mainly studies the background of microfinance introduced in China and the process of development. The third part is the core of this paper, analyzed from demonstration and theory separately, and is concluded that commercialization of microfinance is the necessity of its development. Microfinance is performed under the principle of promoting development of rural economy and poverty alleviation. Then it is also proved there is a win-win situation between policy goals and commercial objective.