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Study On Rural Microfinance Institution Model And Management System In China

Posted on:2009-07-06Degree:DoctorType:Dissertation
Country:ChinaCandidate:H HanFull Text:PDF
GTID:1119360245951246Subject:Agricultural Economics and Management
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History has proved that the microfinance emerging in the 1970s is an effective way to alleviate poverty and to promote employment. In China microfinance developed rapidly in the past more than ten years history, especially after 2005, with impetus of the Government and the central bank, with the support of the rural credit cooperative microfinance projects, with the establishment of commercial microfinance companies, with the help of over 300 non-governmental microfinance institutions, private capital flow into the microfinance market, microfinance has made rapid development, and remarkable achievements have also fulfilled in anti-poverty and the development of rural finance.However, we also noticed that the development of microfinance in China are still unable to meet the requirements for development of rural microfinance, and it still faces such problems as institution set, property arrangements, profit, risk aversion.With reference to China's rural microfinance reality, changes of domestic rural microfinance institution and rural microfinance practice abroad are analyzed to evaluate China's microfinance institution performance and to summarize useful enlightenments of abroad microfinance. Then a comprehensive model of microfinance institution is proposed on the analysis on the welfare model and the institution model. Finally, management problems of rural microfinance in China are explored from four different items: the organization management system, the property rights institution, identification of the interest rate, and risk control.The main contents of this dissertation are as follows:Chapter 1: Introduction. This chapter is the overall outline of the whole dissertation. On the foundation of the established research theme, the academic perspective is analyzed, by which the clue of research thought, research content and research methods are determined and the innovations are explained.Chapter 2: Changes and performance evaluation of rural microfinance institution in China. Relevant theories are used to generalize and evaluate changes of microfinance institution in China. Microfinance in China has undergone five stages after more than 20 years of development, which falls into six different types. Indicators of evaluation are chosen in accordance with the idea "evaluation of the institution can be transformed into that of goals and function". With the allocation of microfinance, economic effects, effects for the fair allocation of performance as main indicators, the performance evaluation system of rural microfinance institution is designed and the multi-level comprehensive evaluation model of microfinance institution performance is built. The performance evaluation system is mainly made up of three parts: performance evaluation of credit institutions, performance evaluation of the fanners' credit, and credit social performance evaluation. The model was practiced to evaluate performance at Pingyao County, Shanxi Province.Chapter 3: Practical experience and enlightenment from rural microfinance abroad. International microfinance can be divided into the beginning of the trial phase, the exploratory phase, and sustained-developing phase. Practical experiences of foreign rural microfinance are embodied as the follows: to adopt different supporting policies, to choose suitable developing model, to ensure commercialization and sustainable development, and to emphasize supervision and management. As far as useful enlightenments are concerned, change from the welfare model to the business model is the future direction for the development of microfinance, interest rates of business microfinance should follow market principles, internal well-being is the solid developing basis, it is essential to strengthen regulation and supervision, and it is also necessary to use external capital, technology and management.Chapter 4: Chinese rural microfinance institution model and choice. Based on the analysis of the welfare model and the institution model, it is reasonable to choose the comprehensive microfinance model, which in essence is balanced priority of microfinance development, and it is also a diversified, fully competitive, efficient model of rural microfinance.Chapter 5: Chinese rural microfinance organization management system framework. In view of long and disorderly management of China's rural microfinance organizations, a "trinity" management system is designed, which consists of the rural microfinance fund management system, the rural microfinance coordinating system, and the rural microfinance supervision system, to achieve unified coordination and management.Chapter 6: Optimization for property rights of rural microfinance institutions in China. Practice shows that the development of China's rural microfinance still depends mainly on formal financial institutions (rural credit cooperatives), but arrangement for property rights of the rural credit cooperatives is unreasonable. In order to develop microfinance in rural areas, the system of property rights must be improved. By analysis and comparison between the institution of microfinance property rights and its performance, and its reasonable institution for the proposed policy recommendations are proposed to arrange property rights satisfactorily.Chapter 7: Analysis and estimate to interest rate of rural microfinance in China. This chapter reviews the documents involving study on interest rates of microfinance, and uses two theoretical models—profit and loss balance method and Rosenberg model—to study the sample: Yanchi County Microfinance Project of Women's Development Association. Using of currently available data under the conditions of making assumption, two important microfinance interest rate level are estimated: not considering all kinds of donations, government subsidies and other funds into the costs, considering only the agencies to achieve Break-even situation and taking into account the microfinance institutions of the future out of dependence on subsidies and donations, and taking independent commercial operation and sustainable development, the microfinance projects for the necessary level of interest rates.Based on typical case, the market is estimated at effective interest rates of 15% to 25%.Chapter 8: Chinese rural microfinance risk control strategy. Rural microfinance risk performs of a variety of forms such as natural risk, market risk, the risk of moral hazard and adverse selection, and interest rate risk. Microfinance risk arises due to various reasons. Microfinance risk control should be achieved by strengthening the credit rating to avoid credit risk, by decentralizing risk through the improvement of loan procedures, by minimizing risk through effective loan management, by compensating the risk through the establishment of the preparation system, and by digesting the risk through settlement of risk loans. Meanwhile, it is necessary to improve credit risk control system, to strengthen credit risk control and protection measures of microfinance institution, and to establish a good external environment to control credit risk of microfinance institutions.
Keywords/Search Tags:microfinance, institution model, management system, interest rate estimate, risk control
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