The Microfinance Risk Research In The City Of Yi Chun

In the 1970 s, the concept of microcredit was firstly forward by the Bangladesh where is the Asian countries. In a certain extent, the purpose is to eliminate the poverty and develop the agricultural production in a nation. However, the initial capital form is mainly provided by the national financial institutions. The basic form is divided into two branch which is low-interest and interest-free loans. Moreover, almost funding is the government subsidies or the various public welfare funds. In the early 1990 s, in the village of China the microfinance was appeared which was based on Bangladeshi. Additionally it had established the “economic cooperatives for poverty alleviation.” After 20 years, the microfinance has been developed effectively which holds a central position. There are still some problems in our country sides, for example, in the countryside it is difficult to loan from the bank. In order to establish scientific financial service system, the government has to improve farmers' living standards, promote the countryside economy and solve the “three agriculture problems”. For now, the development of microfinance has been very well in the almost areas of China, however, it still faces many credit risk which is being examined Moreover, some issues leads the microfinance is difficult to meet the development of countryside, such like the target market coverage rate is too low and unexpected risk. Therefore, it is necessary to control the risk of microfinance for our countryside. There are three reasons, firstly is to ensure the long-term implementation of microfinance. Secondly, it is effectively to safeguard the farmers' funds, finally is to ensure the orderly development of rural economic structure.further promote the sustainable development of Yi Chun rural microfinance. The view of this paper is the present situation of microfinance risk. This paper expounds the various existing risks in the rural microfinance, which use Yi Chun(Hei Longjiang province) as exam area. The paper focus on to analyze the risk of rural microfinance in Yi Chun, depending on the experience of microfinance risk in other countries gives some measures and the suggestions.