Study On The Development Of BH Microfinance Company

With our country development has entered into a new stage, the economy and politics have been strongly promoted. But in rural areas, the economic development is difficult because of the lack of financial institutions and the lack of financial services, while there is a large amount of capital affected by the policy not to invest in the financial sector, rural-urban imbalances in our development. Learning from the foreign successful method of microfinance, in order to regulate and guide private capital investment, our country has tried to promote microfinance companies. It has a positive meaning, enrich our financial system, meet the financial needs of various groups. But in the process of the progressive development of a microfmance company, the emergence of a number of properties such as location is not clear, unable to absorb deposits, subsequent lack of funds sources, the low capability of product innovation, and risk control mechanisms are inadequate. These not only affect the microfinance company's profit increase, but also suppressed demand for microfinance ordinary course of business activities, effected the sustainable and stable development of economy and society.Based on microfinance research achievements conducted by experts and scholars, using the literature analysis, empirical study and comparative research, learning successful experience from international microfinance institutions, I analyzed the actual operations of BH microfinance co., Ltd, studied the conditions and the limits of sustainable development by the analysis of the SWOT, and make the appropriate recommendations:a clear strategy for future development, improving the corporate governance structure, achieving sources diversified, reducing the business expenses, increasing the product innovation, providing variety form of repayment way, perfecting the system of interest rate pricing and improving risk control mechanism.