Resarch On Micro-Finance Perofrmance Evaluation In Jiangxi Banking Industry

Micro enterprise is one of the driving forces for the national economy, especially inthe post-crisis era. Many scholars believed the steady and rapid development of microenterprises were the main power to lead the economy out of the woods. Solving thefinancing problems of micro enterprises, providing a full range of financial services formicro enterprises, had become a common concern in the society. With the increasinglyimproved financial services for large and medium-sized enterprises, more banks wouldenter the micro market and intensify competition in the future. China’s economicdevelopment pattern, adjustment of industrial structure, the development of the capitalmarket, the interest rate market, the promotion of Basel III, have produced newopportunities for the development of micro business. The strategy of commercialbanks for promoting micro-finance, can not only accelerate their businesstransformation, improve profitability, but also is an important financial means toexecutive social responsibility and support the country’s economic restructuring. Due tothe unique market positioning and pattern of development of micro enterprise,governments and financial institutions must abandon the traditional support policies,combine with financial epitaxial theoretical model and the characteristics of microenterprise, and design tailor policies for micro-finance.Firstly, on the basis of the literature review, this essay made in-depth discussionson the theoretical basis of micro-finance and banking performance, and lay perspectiveand theoretical basis throughout this article.Secondly, through the study of the domestic micro enterprise, the paper analyzedthe current situation and the plight of microenterprises based on financial needs and thedevelopment of backward contradiction. Despite the tensions in the line of credit, theaccelerative interest rate market and the rapid increasing direct financing, the operatingmanagement of banks business was undergoing tremendous changes, more and moreattention was paid to micro-finance, banks vied with one another to launch of its ownmicro-finance products. However, in the transition process for the development ofmicro-finance, many problems exposed. For example, the existence of deposit fundsand regulatory capital sources, the scarcity of financial resources, high marketdevelopment costs, operational efficiency needed to be improved, imperfection ofsupporting system and so on.According to the analysis of market share and concentration to market structure ofmicro-finance of Jiang Xi banking industry, although neo stockholding system banks took advantage of its flexibility to erode market share of national banks. Branches wereburgeoning. The raising market entity caused Jiang Xi banking industry become morecompetitive monopolization market structure. Nevertheless, due to the restriction ofscale and customers’ preference, it was difficult to change such an oligopolistic marketin the short run.In chapter IV, the paper made some illustrations to the structure of micro-bankingabout Min Sheng bank Nan Chang branch and analyzed determinants of micro-bankingperformance to foreshadow the following index framework. The author analyzed it fromthree aspects of micro-loans, micro-settlement and micro-banking service to evaluationand comparison. For every aspect to grasp the performance of Min Sheng bank NanChang branch by single index ratio analysis and research results found gap existedbetween different businesses. The paper made some brief explanations about thedifferences. Statistic research supported that micro-finance performance of bankingindustry was superior to average and the gap kept enlarging. Next, it pickedmicro-banking data of Min Sheng bank Nan Chang branch during2011-2012, followingthe index hereinbefore and constructing the micro-banking performance evaluation. Theevaluation system chose13indexes from three aspects of micro-finance: micro-loans,micro-settlement and micro-banking service, and build up second level index of factoranalysis. Two common factors was chose to synthesize the performance of commercialbanks after calculating. The final grading was calculated by synthesized factors of MinSheng bank Nan Chang branch. By synthesized factor analysis, it illustratedperformance differences between industries more systematically and made consistentresult with single index ratio analysis.In the end, after combining the actual condition of Jiang Xi banking industry andthe micro-banking performance impact factor of Min Sheng bank Nan Chang branch, itmade a conclusion that pushing micro-banking development was not easy. Sincesystematic program as it was, both deepening financial institutions revolution andhaving a wide vision from nation economic development were need to take considered.Government, financial institutions and micro businesses were all required to make moreefforts to overcome the micro-banking development problem. Commercial banks musttake micro-loans as the breakthrough point. They should not only integrate variety ofproducts and services, but also make appropriate pricing and improve risk managementto extend the depth and breadth.