The Research On Development Mode Of Microfinance In Postal Savings Bank Of China

Microfinance services of Postal Savings Bank of China aim at providing financial funds for farmers and small-sized enterprises as well as complying with the national industry policy for the development of agriculture, rural areas and farmers. In its initial stage, microfinance created high income for Postal Savings Bank of China as an important pillar. It has paved the way for the sound and rapid development of Postal Savings Bank of China.However, microfinance services of Postal Savings Bank of China have begun to decrease slowly since 2012. Microfinance credit loan declined dramatically. At the same time, asset quality was deteriorating constantly. The vicious circle was formed between business development and deterioration in asset quality. Microfinance in Postal Savings Bank of China encountered a bottleneck.Based on the current development situation of microfinance in Postal Savings Bank of China, this paper takes the development mode of microfinance as its subject.First,this paper introduces its theme and significance.It overviews the research status of microfinance both at home and abroad. Second, starting with the related theory of microfinance, this paper states the definition, classification and characteristics of microfinance and defines the conception of the development mode of microfinance. At the same time it also evaluates and analyzes the typical development patterns of microfinance and its characteristics in foreign countries.Third,this paper explains the development mode of microfinance of some domestic commercial Banks, including agricultural bank of china, rural credit cooperatives and postal savings bank of china. Based on the above analysis, this paper points out the problems of the development mode of microfinance that the Postal Savings Bank of China is facing,and studies the reasons of the problems.The main reason is that Postal Savings Bank of China lacks talents with comprehensive abilities,innovative of products,high capability of credit management and strong risk control ability. Finally, this paper builds the development mode of the Postal Savings Bank of China from two aspects.On the one hand,using swot analysis, it analyzes strengths, weaknesses, opportunities arid challenges of the development mode of microfinance that Postal Savings Bank of China is facing. On the other hand, it takes some advice for the development mode of microfinance of the Postal Savings Bank of China from nine aspects,including improvement of comprehensive quality, optimization and perfection of the product, the introduction of investment,the improvement of the human resources system construction, the improvement of marketing and business development ability, the strengthening of credit management and risk control capability, three rural financial services and pricing mechanism of interest rate.