Study On Development And Sustainability Of Micro-finance In Rural China

Microfinance produced since the70s of last century, mainly in rural poverty reductionas ways and means, has been widely recognized in the international context, it aims tomicrofinance institutions through traditional financial institutions is difficult to provide abenefit to the majority of farmers in credit lending based financial services, and through theinjection of foreign capital, to break the vicious cycle of chronic poverty caused due toinsufficient investment. Currently, after nearly40years of development, microfinance hascovered most of the developing countries, and a few developed countries. For thedevelopment of the cause of global poverty made a great contribution.Our formally introduced in1993as a template with the Grameen Bank microcreditprograms GB model, and in the pilot project has made great achievements, and for thedevelopment of microfinance services provide successful experiences and paradigms.Through nearly20years to promote the development of microfinance through theexperimental stage, the promotion stage, stage of development to the current stage ofinnovation, has become China’s rural financial system and long-term poverty reduction animportant and indispensable component. To alleviate the imbalance between supply anddemand of rural financial markets, optimizing the rural financial system, promote ruraleconomic development, agricultural science and technology and to improve the livingstandards of farmers and other aspects plays a vital role. However, China still nascentmicrofinance in rural areas, do not form a mature industrial system, mainly in the supplyand demand due to insufficient supply of funds is still prominent, the lack of sustainablemicrofinance own operational capability, target customers targeting mechanism is notperfect, credit flexibility is not enough, and many other single product. Summary of ruralmicrofinance20years of experience can be drawn, and its development is taking a path topolitical interference led to the development of market-oriented weak. The futuredevelopment trend of China’s microfinance should be gradually dominated by the pro-poormicrofinance welfare oriented towards commercialization of microfinance institutionaldevelopment and enhance the sustainability of microfinance institutions, the ability towithstand risks and product innovation capability.This paper is divided into six chapters. First chapter introduces the researchbackground and significance, literature review and abroad. The second chapter introducesthe concepts of microfinance, including microcredit overview of the theoretical basis andcredit models. Chapter III study abroad typical microfinance model from the perspective ofdevelopment experience, and draw on the development of the microfinance inspiration and reference. The fourth chapter describes the history and development of current developmentsince the introduction of microfinance in China since analyzed from both supply anddemand trends, and comparative analysis of the more successful microfinance " ZhejiangModel " and " Inner mode." Chapter V presents the development of microfinance ininternal and external policies and regulations and constraints due to two factors, the sixthchapter discusses the sustainable development of microfinance SuggestionsIn this paper, the basic concepts and theories of international advanced introducemicrofinance trends, and on this basis to analyze the feasibility of domestic microfinancefor mature model and experience, combined with the basic environment for thedevelopment of China’s rural economy, pointing out small deficiencies and problemsemerging microfinance sustainable development in our country. In different systemsanalysis and research and policy development on the choice of microfinance, targeted tospecific analysis and research on the actual situation of the country caused by regionaldifferences, and made suggestions with regional characteristics.