Study On The Development Of Non-profit Micro-credit In China

After the introduction of Non-profit micro-credit from the 90s of last century to our country, it has made a contribution to rural economic development and the equal credit opportunity for rural poor. However, since 2005, the beginning of pilot commercial micro-credit, the development of non-profit microcredit is sluggish due to various reasons. The development trend of it has become the focus of academic and institutions of non-profit microcredit. It is an urgent problem.In this paper, this paper hopes to discuss and analysis the future development of the non-profit microcredit, especially its commercial development base on its history and current situation.This paper is composited five parts, presenting the history, the status quo of non-profit microcredit, analyzing the core institutions, the puzzles. Based on this, combining with the reform of rural financial, the paper has also explored some issues concerning the commercialization of non-profit microcredit.In the first part, the concept of non-profit micro-credit was defined, and in the introduction of the analytical background and describes the history of China's public welfare and status of micro-credit on the basis of the salient features of public welfare were analyzed.In the second part, the core systems of non-profit micro-credit, including the group lending system, dynamic system of incentives and amortization were analyzed. Only because of these innovative systems different from the traditional finance, the non-profit micro-credit institutions were able to lower their own risks while providing services to low-income.In partâ…¢, the role of non-profit micro-credit, and its role mainly in helping the poor, to the individual micro-impact on the access to social capital, as well as on China's rural financial system, an active role in promoting the reconstruction were introduced.In part IV, the predicament faced by the non-profit micro-credit service providers were analyzed. First of all, the lack of a proper legal status has restricted the development of non-profit micro-credit institutions. Second, due to the narrow sources of funding, most of them rely on external assistance, the financial sustainability is weak. And third, the restraints on its internal management systems.In part V, the issues of commercialization of non-profit micro-credit were explored. How to maintain its original performance targets and increase their outreach will be a key and core issue for the commercialization of non-profit micro-credit institutions. The commercial development of micro-credit is only a means, not a target. On this basis, this thesis also analyses the way of how to promote the commercial development of China's non-profit micro-credit, and provide some suggestions.This paper using the theory of statistics, economics, finance, sociology and law analyses systematic the status quo, the contributions, and the puzzles and the core institutions of China's non-profit microcredit base on the development of China's rural financial. Pointing that the Government's support is an indispensable element of its commercial development, and building inclusive financial system is the key, while expanding the source of funding, promoting the self-sustainable development and innovating institution are the bases for the micro-credit commercial development.