Research On The Sustainable Development Of Microfinance Institutions Of China

This paper first expounded the research background and significance concerning the sustainable development of microfinance institutions,summarized relevant studies,and established research objectives and emphasis.After defining the concept of sustainable development of microfinance institutions and explaining relevant theories,this paper introduced and analyzed the development history,current status and unsatisfactory actualities of Chinese microfinance institutions;analyzed the factors influencing the development of microfinance institutions by empirical testing.On empirical aspect,the existing research methods were used for reference to investigate the actual social benefits achieved by microfinance institutions in 2005-2015;data envelopment analysis was used to analyze whether microfinance institutions' multi-input-output pattern was technically efficient,and intermediary approach was used to verify the financial performance of various microfinance institutions,as well as the problems arising during their development.Then,this paper analyzed the development course and typical cases of microfinance institutions in order to gain experience and enlightenment from them.The analyses show that the sustainable development of Chinese microfinance institutions is required not only by the microfinance institutions' own growth,but also by the growth of China's financial market and economy.According to international experience,a microfinance institution must turn itself from a subsidized welfare-based institution into a commercially sustainable institution in line with actual national conditions.To realize sustainable development of domestic microfinance institutions,Chinese government,society and microfinance institutions themselves need to make some improvements.Finally,the paper concluded that to resolve the problems arising during the development of domestic microfinance institutions,the government role in the development of microfinance institutions must be transformed based on a change of microfinance institution positioning,the market-oriented reform of microfinance institutions must be carried on under a more flexible interest rate policy and a more specific regulatory policy externally,and the internal business pattern must be transformed to improve the management level,enable a new service mode and create more types of products,so that microfinance institutions could achieve sustainable development.