Performance Evaluation Of Rural Microfinance

Marshall used the metaphor of poverty as a cancer in the national economy.He pointed out that poverty is not only the misfortune of the poor,but also the misfortune of a country.Therefore,poverty alleviation is not only a moral obligation,but also an economic responsibility.Agriculture is a weak industry,farmers are vulnerable groups,rural areas are underdeveloped areas,therefore,poverty in rural areas is the main body of China's poverty,China's poverty reduction target should also be based on poor farmers.As an important means of financial poverty alleviation,Microfinance shouldered the important mission of poverty alleviation,At the same time,as independent operators,microfinance institutions should achieve financial sustainability,and only by that way,they can provide financial services to the poor for a long time.However,microfinance always with the characteristic of high cost.Therefore,how to reduce the operating costs while effectively playing the role of poverty alleviation is an urgent problem to be solved in practice for microfinance institutions.The research object of this paper is the performance of rural microfinance,first,this paper introduced the relevant theoretical basis of rural microfinance and its development status domestic and abroad,then made an example of Jiangxi Rural Credit Cooperatives,for it is the representative of the rural microfinance institutions in Jiangxi Province,by doing an empirical analysis in poor performance and financial performance,found that the rural microcredit not only plays a significant role in increasing farmers' income,but also in improving the return rate of credit asset and reducing the rate of non-performing loans,namely Jiangxi Rural Credit Cooperatives have the ability to achieve double cooperative target.This paper found that there are many problems in practice by interviewing the demand and supply sides of the rural microcredit,On the expansion of coverage,low levels of agricultural technology,low rate of return and narrow investment channels leading to the poor demand of microcredit,In terms of reducing the cost of microfinance,the weakness and high risk of agriculture,the lack of awareness of farmers lead to the high cost of microcredit.In this regard,this paper made the following suggestions:first is the additional network of financial institutions to improve financial services coverage;second is to establish the development strategy of three-in-one to improve rural microfinance payment;third is to popularize the basic knowledge of finance to improve farmers' spirit of contract;fourth is to build rural credit system and configure the agricultural insurance measures to reduce the credit risk of default.