Dilemma And Outlet Of Rural Microfinance In China

The development of rural micro-finance is one of the cores of the "Three Rural" Issues. Recently, the financing problem of the farmers became the social focus along with the development of industrialization and urbanization. The successful experience had proved that microfinance, as an innovation in system and technology of financial service, provided a novel way of thinking in order to resolve the financial constraint problem and improve the rural financial system. With the development of microfinance in china, it make some positive impacts in rural economy, such as ease the financing problem to farmers and medium-small enterprises, promote the improvement of farmers’ income levels finally. Overall, microfinance in china was still in the exploratory stage, not only which contain clear guidance by macroeconomic policies, strong market demand, and board space for development, but also face a variety of constraints and challenges. There were many issues exposed in the development of our national microfinance, for example, loan interest rate and amount of credit was strictly limited; credit period was shorten; business variety was univocal; the pilot microfinance company "only loan but does not insert", which lead to shortage of funs; microfinance institutes lack reasonable personal impelling system, resulting in talents loss; related laws were not sound and so on. The existence of these problems may not lead microfinance in china to achieve sustainable development, and affect its role in china.In this study, based on analysis and summarization the successful experience at home and aboard in microfinance, we studied the existing problems which impeded sustainable development of rural microfinance according to the actual situation faced by microfinance in Hengyang country. Finally, we put forward the corresponding countermeasures in aspects such as perception, system, service, technology etc, in order to bail out rural microfinance from predicament on the situation of the new rural construction, which is necessary to further promote the full implementation of the microfinance in Hengyang country.The first Chapter was set forth the demarcation of microfinance and related concepts, and exhibits a general description about studies of rural microfinance at home and abroad. In the second Chapter, I introduced several fundamental theories for the development of rural microfinance. Firstly, we expounded relative theories of rural microfinance, seeking the origin theories of presence and development of microfinance. Secondly, we articulated theories of microfinance sustainable development and the factors which influenced the development of rural microfinance. In the third Chapter, we stated the general situation of our rural microfinance from development course and operation mode to characteristics, and then discussed the impacts of microfinance to the rural economy and society. The forth Chapter studied the problems and difficulties faced by its sustainable development of microfinance, as well as analyzed formed reasons of which tentatively. Rural Credit Cooperatives (RCC) in Hengyang Country as an example, display a detailed analysis of practical problems encountered in the process of microfinance. In the fifth Chapter, we introduced foreign classic mode of rural cooperative finance, summed up the successful experience of its development and revelation to the development of rural microfinance in China. The last Chapter put forward a bran-new thinking to china’s rural microfinance, in aspects of improving external environment and internal management, aim to remove the barriers of sustainable development. The following question should be given priority: promoting a commercial operation, creating a favorable external environment for credit, controlling credit risk, improving the current situation of supply and demand, strengthening supervision and management, and optimizing employment mechanism and so on.