The Study Of Development Of Micro-Loan Companies Facing Difficulties And Countermeasures In Inner Mongolia

In the 1970s, the founder of Bangladesh rural bank (GB) doctor Yunus took the lead in the micro-credit for the poverty alleviation work in Bangladesh and made great achievements. GB mode was introduced all over the world, and he also won the Nobel peace prize for 2006. In 1994, the micro-credit was introduced to China in an effective mode for helping the poor, and caused great concerns of the government, scholars and related institutions. After more than ten years, the micro-credit had once again become the focus of attention. In 2005, the CBRC and the People's Bank of China began experimental work of micro-loan companies that only loan but not deposit in Shanxi, Sichuan, Guizhou and Inner Mongolia. In 2008 the CBRC and the People's Bank of China jointly issued guidance on pilots of micro-loan companies, and provided policy guidance to carry out micro-loan companies.Based on the present micro-loan companies as the research object, through the on-the-spot investigations of the micro-loan companies in Inner Mongolia, the author finds that micro-loan companies are facing many difficulties in the course of business: in the macro level, the lack of clear laws and regulations, a single source of funding channels, the lack of an effective external supervision, and the lack of relevant skill training; in the micro level, identity ambiguity, the lack of talent, and the lack of an effective credit risk control mechanism, which have seriously hampered the sustainable development of micro-loan companies. According to poverty-related theory, financial repression theory, asymmetric information theory and credit rationing theory, the author believes that the existence of micro-loan companies are essential and rational, and the key is how to promote the sustainable development.Based on this, the author begins with the basic concept and the basic theories of the micro-credit, introduces its development context and situation in China, and details the development and policy measures of micro-loan companies in China. According to the theory of micro-credit sustainable development, with a combined method of theoretical and practical and summarized research method, the author analyzes deeply that micro-loan companies are facing the above-mentioned difficulties in the sustainable development. On the basis of introducing successful experiences about the Grameen Bank (GB) and the People's Bank of Indonesia (BRI), the author sums up the reference experiences for the micro-loan company in China. On this basis, the response to the above constraints is putting forward policy recommendations from both the macro and micro, as follow: consummate the relevant legal and policy rules; innovate mechanisms to achieve diversification of funding sources; establish the combined regulatory system of an external non-prudential regulation and industry self-regulation; sound credit risk control mechanisms; strengthen its credit rating; attract talent and enhance staff training, with a view to help the development of the micro-loan company.