Study Of Rural Financial Institution’s Microfinance In Guangxi Province

Guangxi is one of the western undeveloped areas in China, which is also the key poverty alleviation object of the West Development Strategy. Microfinance is an effective way of alleviating poverty, which helps peasant escape from poverty in Guangxi. As a result of the considerable number of poor people as well as the huge income gap between the urban and rural residents, Guangxi’s peasant is in great need of microfinance. However, there exists quite a few problems in the development of microfinance in Guangxi, which limit the poverty alleviation function of rural microfinance. The solution of the issue of rural financial institution’s microfinance in Guangxi is benefit to meet the multi-layered need of credit in rural area, and then push the district economic development at the same time helps peasant escape from poverty. NGO and international organization, government poverty alleviation credit institution, formal microfinance institution and new type of rural financial institution is the main supply of Guangxi’s rural microfinance Study of this essay focus on microfinance that is mainly supplied by formal microfinance institution and new type of rural financial institution.This paper based on the theory of microfinance, analyzing the development of rural financial institution’s microfinance in Guangxi from demand and supply, think rural financial institution’s microfinance in Guangxi has many problems, such as the defects of microscopic mechanism, deficiency of security system, lack of government supervision, imperfect regulation. On this basis, I proposed measures from improving the system design of microfinance and external environment, some of which are able to promote the development of rural financial institution’s microfinance in Guangxi. For example, solving the problem of funding, relaxing restrictions on credit period as well as size of credit, setting more reasonable rates-setting a more reasonable rate, innovating financial products, strengthening the raining of employee, making the legal system perfect-improving the law, defined government duties clear, improving the mechanism of risk sharing and compensation.