Study On The Development Of Microfinance In Rural Commercial Bank Of Ningyang

The Chinese government has been working hard to solve the problems of backward development of agriculture,rural areas,and farmers.Among the many factors that hinder rural development,"difficult loans" is a prominent issue.At present,from the perspective of domestic credit development and the innovative practice of foreign credit,microfinance has become an important means to solve the difficult problem of rural loans.The characteristics of small loans,decentralization,and low risk guarantee the sustainable development of microfinance.Profitability has become a major trend in credit development.In recent years,with the gradual implementation of the rural financial reform,the service level of China's rural finance has also improved significantly.Intoday's society with rapid economic development and fierce competition among enterprises,how to implement social responsibilities more effectively while taking into accounttheir own economic benefits is a key issue for the sustainable development of microfinance operations in rural financial institutions.This paper first introduces the purpose and significance of the research on microfinance issues,draws on the foreign microcredit development model,and interprets the re-search methods and research content as a whole,and points out the innovations and deficiencies in this article.Secondly,it summarizes the concepts of personal loans,microfinance and rural commercial banks,and introduces the microcredit development theory such as transaction c-ost theory,credit ration theory and inclusive finance theory,as the theoretical basis for this study.Taking Ningyang County as an example,the basic situation of Ningyang County,Ningyang Financial Institution and Ningyang Rural Commercial Bank was analyzed,and the development and changes of microfinance of Ningyang Rural Commercial Bank from 2013 to2016 were introduced.The establishment of credit products and process mechanisms,and the introduction and comparison of microcredit cases wit-h actual cases.At the same time,pointed out that Ningyang Rural Commercial Bank has a structural contradiction between the demand and supply of loans,the mismatch between the duration of microfinance and the actual demand deadline,the cumbersome process for handling microfinance,the unsound risk management and control mechanism,and the poor timeliness and high Interest rate loans,high ratios and other business development issues.Analyze the reasons that affect the development of microfinance business,such as single credit products,failure to subdivide customer groups,poor marketing channels for microfinance business,asymmetric cost,income and lo-an risks,and positioning of microfinance and the degree of emphasis is not enough.Finally,we contacted the actual situation of Ningyang Rural Commercial Bank and put forward rationalized proposals for the development of microfinance business,such as insisting on the orientation of serving “agriculture,rural areas and farmers” and actively integrating supplyside structural reforms;and implementing a pre-rating credit system for microfinance,Reduce information asymmetry;increase product innovation,enrich credit product system;strengthen credit environment construction,implement inf ormation cross-validation system and establish customer information base;establishs cientific and reasonable credit accountability mechanism and internal management system;The marketing channels for loans,the establishment of a fullcoverage marketing network system,the reinforcement of science and technology support,the optimization of microfinance processes,and the improvement of microfinance efficiency.This h-as certain practical significance for promoting the sustainable development of microfinance in rural commercial banks and the development of inclusive finance in rural China.