The Evolution Of Chinese Microfinance Institutions

In the 2006 Nobel peace prize to the microfinance pioneer Muhammad Yunus, founder of Grameen bank, academia began to more and more research the microfinance institutions. Practice has proved that through the commercialization of microfinance institutions development and makes it able to keep a sustainable on financial, and this is the important premise of microfinance guarantee to help poor people.But, excessive commercialization will lead to the mission drift of microfinance institutions, the interests of the poor people will be damaged, once the commercialization degree is not enough and will not ensure that microfinance institutions would be able to carry on. The development of Microfinance Institutions in the world is indeed plays a very important role for poor people out of poverty and economic development, but they are facing with the high transaction costs, risk control, information asymmetry and so on. Microfinance institutions in our country has developed rapidly in recent years, microfinance institutions under the background of rapid commercialization, also began to appear the separation of the target, from the initial single eliminate poverty as the goal to promote rural economic development, now microcredit may be defined as an important supplement of the formal financial system. Microfinance institutions are also by means of through continuous innovation to meet the choice of the economic environment.Microfinance institutions in our country has a thousand years history of development, but these economic organisms in the long evolutionary process, a lot of internal "gene" rarely change or change slowly. Such as through mortgage, pledge and guarantee to control risk, and to restrain the borrower credit. These ways still are the mainstream of risk control measures from the day of the birth of microfinance institutions were introduced to now. Based on this, the microfinance in rural areas, also lacks of the logical starting point, this is also in great extent, limits the development of microfinance institutions, and for this reason, based on the analysis of the evolution paths of microfinance institutions in China, using the evolutionary economics framework to analysis microfinance institutions under the background of the history, looking for the history of its development path, analyze the causes of path dependence, and then find out the evolution direction. The analytical paradigm will be on the bounded rationality and satisfactory hypothesis as premise of analysis with historical methods to analyze the internal mechanism of economic evolution, can be more close to reality, also can provide microfinance institutions to better serve the economic development with possible directions.This article is analyzed within the framework of evolutionary economics. Firstly, we analyze of the internal mechanism of remain "routine" in the microfinance institutions in the process of one thousand years of development, analyze the causes of path lock, also gives the path instead of the path dependence, the long-term path dependence in microfinance institutions form within certain system steady state, the steady state limits the development of the innovation. The microfinance institutions under the background of Internet and globalization, new exchanges are becoming more and bigger. It is easier to form a inner instability, and form a new level of orderly state. The intrinsic factor is the development of innovation.Secondly, this article holds that the development of microfinance institutions has never been isolated, but in the interaction with other institutions. By building a microfinance institutions of different types of market position between the symbiotic model, proved that the innovation of the stronger competition coefficient is important condition in the microfinance institutions survive in the economic evolution. This symbiotic relationship of interaction between microfinance institutions affect the microfinance industry, resulting in a microfinance institutions and industry promotes mutually, the co-evolution relationship between common evolution in different periods have different characteristics, present a nonlinear dynamics. The article also analyzes the dynamic behavior of the participants under the microfinance institutions in different credit constraints in rural areas and urban areas of. We believe that in the rural areas have elite leadership will be of great significance to the microfinance smoothly, and in urban areas, rational design of incentives to make the loan officer actively post-loan tracking back to microfinance institutions loans is crucial. Microfinance institutions, as one of the important ways to eliminate poverty although increasingly weakened, but the government’s public purpose still needs the support of financial policy, then the positive and reverse incentives will have different effect.Finally, combined with the conclusion of this article, with microfinance at the path dependence of historical conditions, analyzes the diversity of Chinese microfinance institutions innovation is insufficient at present, the cause of the slow evolution from microfinance institutions path alternatives, self-organization conditions. We put forward to establish microfinance information registration platform, improve the credit management system, establish a unified, microfinance rating system suitable for practical countermeasures in our country, and in the form of a case is given in the current world interconnected and government put forward under the condition of Internet+, microfinance institutions should adapt to the possible direction of development.