Font Size: a A A

Micro-Credit Of Formal Financial Institutions In China: Mechanism And Efficiency

Posted on:2006-04-30Degree:DoctorType:Dissertation
Country:ChinaCandidate:L L LiFull Text:PDF
GTID:1116360152992497Subject:Agricultural Economics and Management
Abstract/Summary:PDF Full Text Request
It is an important problem for the development of rural economy that how to lend to farm households. And it is also a challenge for governments in all countries. The practice and development of microfinance offers a bran-new thinking for solving this problem. Especially, with the commercialization of microfinance, micro-credit of formal financial institutions will perform an important function in rural finance. With a view to the development of microfinance and rural finance in China, based on the practice and experience of commercialization of microfinance in foreign countries, the thesis researches the mechanism of micro-credit of formal financial institutions in China. It analyses the demand and supply of micro-credit of formal financial institutions respectively and explains its intrinsic mechanism. Then, the thesis evaluates the efficiency of the RCCs-MC (micro-credit of the rural credit cooperation) in China. It analyses the influence of RCCs-MC to the financial institution (RCCs) and farm household respectively. Finally, the thesis analyses the role of government in rural finance and the relations of government, financial institutions and households, and then gives some suggestions.Main conclusions of this paper are as follows:1. As the beginning of the commercialization of microfinance in China, RCC-MC will perform an important function in rural finance. It is a necessary choice for the commercialization of China's microfinance, and it also adapts to the development of rural finance in China.2. Based on the research of farm household data, the conclusion is there are many credit demands in China's country, most of which are micro-credit. And the conclusion from the analysis to influence factors of the credit demands is there are obvious positive relations between the experiences of having obtained loans, the anticipation that they can obtain loans and the credit demands of farm households.3. In China, as the institution of disbursing micro-credit, RCCs have a remarkable advantage, and RCCs also face some obstacles in microfinance. At the same time, what motivate RCCs entering to microfinance are both the obligations to government and the profits of disbursing micro-credit. And, what is more important for RCCs is that they can acquire the profits from micro-credit.4. A group of successful methods, including group lending, test lending (small loans that microfinance institutions lend to identify the borrower's credit) and promise of continuous lending, reduce information asymmetry and moral hazard in rural credit market, which is the important characteristics of microfinance. RCCs-MC in China learns from above mechanism of microfinance, and utilizes the informal institution (social capital) sufficiently in the mechanism of RCCs-MC.5. By the positive research, the conclusion is RCCs-MC can improve the operating efficiency of RCCs and credit attainability, production-level and income of farm household.6. It is necessary for government to play an important role in rural finance. In the mechanism of RCCs-MC, the cooperation among government, financial institutions and farm households will persistently promote the development of RCCs-MC.
Keywords/Search Tags:formal financial institution, microfinance, mechanism, efficiency, rural finance
PDF Full Text Request
Related items