| At present, there are many researches on sustainable development of microfinance, but mostly consider the issue from the perspective of supply, namely from the perspective of raising interest rates and other measures to cover the cost, while studies on how to reduce transaction costs in order to boost demand, so as to be continued development is rare. Rural Microfinance worth discussing many issues, this essay will focus on three issues of rural household microfinance in China, the first one is the lending rate, including the highest lending rate household affordable and the lowest loaning rate MFIs acceptable; the second is the prevention of the risk microfinance, reduction of the transaction costs, and reinforcement of rural credit system problem; the third is the choice of the effective model for sustainable development of China's rural Microfinance. According to the studies, we can get to the ultimate goal mat rural household are out of poverty on one hand,and MFIs can get healthy and sustainable development on the other hand.China, the world's largest developing country, about60percent of the population lives in rural areas, agriculture, rural areas and peasants has always been a major issue for national economic development and modernization. The report of the17th and18th CPC National Congress clears that' solving agriculture, rural areas and peasants is related to the overall situation of building a moderately prosperous society, which must always be a top priority in the party's work'. Raising peasants' income is the core of completely resolving the problem of agriculture, rural areas and peasants.Since the reform and opening up, from the pilot implementation in various places to comprehensive promotion, China's rural household microfinance has played a positive role in increasing peasants' income, in supporting rural economic development, and in building a new socialist countryside. Practice has proved that microfinance can provide effective financial support for the development of 'agriculture, rural areas and peasants'development, increasing peasants' income, and helping the construction of a conducive and harmonious society.However, we also noted that the development of China's rural household microfinance is still hard to meet the requirements of economic development in rural areas, peasants'loans difficult'issue has not fundamentally changed, for the problems we also need to analyze, research and resolve. From the demand perspective, peasants microfinance needs are diverse, both credit demand and the needs of savings, insurance, and investment. In all the needs of the financial services, to meet the needs from the perspective of ease of analysis, loan demand is the primary demand. On the supply is concerned, although China has initially formed a diversified microfinance institutions supply diversification and supply channels situation, however, dues to the limited total supply the credit satisfaction rate is too low, and the microfinance services are still very inadequate. The problems of the demand and supply of microfinance affects the sustainable development of microfinance. Therefore, these issues should be analyzed, studied and resolved.This paper argues that (1) In China there are a lot of potential credit needs of the peasants there, but lacking of effective demand for credit, which means a lot of credit demand or potential demand can not be effective. The exogenous constrain factors affecting the Willingness of peasants are mainly lending rate, loan term and the loan type. As the price signals, in the past, the influence of the lending rates on the scale, form and effectiveness of the peasants'household microfinance often had been underestimated in the pasting researches and public opinions. In addition, the demand for loans is highly sensitive to the lending type, our existing lending type which mainly relies on mortgage and loan guarantees is not suitable for household credit.(2) The high transaction cost of microfinance becomes a reason for many experts and scholars to raise the point that maintain the sustainable of the peasants' household microfinance by high interest rate. However, under the current conditions of rural income breakeven level of interest far beyond the peasants'affordability, which affects the development of microfinance. Therefore reducing transaction costs is the fundamental way to the sustainable development of rural microfinance.(3)The lag construction of the rural credit system restricts the development of microfinance peasants, the establishment of a standardized peasants' household credit management system can effectively solve the problem of information asymmetry, thereby reducing peasants' microfinance transaction costs (mainly operating costs and risks cost), so that the microfinance can develop sustainable under the interest rate affordable for lending institution and peasants, and to achieve the fundamental purpose of 'double surplus' of microfinance institutions and peasants.(4) The development of China's microfinance must go its own way but not blindly copy the success of a country ready, and design the microfinance model to fit the current stage of development of China's market economy requires. Choice of Chinese rural microfinance overall development model is a quasi-public good institutionalism, which is a quasi-market-oriented microfinance model between the welfare state and commercial institutionalism,based on the doctrine of public welfare system, with the necessary policy support.(5) for the problem of Chinese peasants microfinance like lack of existing outlets, inadequate funding, narrow face of loans, high operating costs and risks, lack of protection and support, and lack of supervision, it should build a 'organizational system+multi-channel diversified funding sources+peasant household credit system+moderate rates of microfinance+credit insurance+policy support+prudential supervision' Chinese peasants microfinance operation mode.There are eight chapters in the fully essay, and structural arrangements and main contents are as follows:Chapter I:Introduction. This chapter mainly focus on the research background, significance, research ideas and logic, the main research method, the possible innovation and inadequacy.Chapter ?:Theoretical summary and research review. Peasants mainly clear meaning of peasants household microfinance, introduce peasants' related theoretical basis about peasants' household microfinance, and review the status of domestic and foreign research on microfinance at the same time.Chapter III:Practice of foreign microfinance and enlightenment. This chapter recalls the history of major foreign microfinance, development patterns and trends and gives lessons to China's better development of microfinance. Microfinance abroad experience is reflected in the following:microfinance should be extended to as many low-income groups, and be sure to pay attention to risk control; the determination of the micro credit interest rates should not only consider the financial sustainability of institutions, but also the customer's affordability; development of microfinance should be gradual, and the supervision of microfinance is essential; monetary policy and financial reform is very important to the country's government microfinance development and necessary support is essential.Chapter IV:Development process, current situation and problems of Chinese peasant microfinance. This chapter mainly reviews the development process, analyzes the present characteristics, problems and reasons and assesses its effectiveness. The analysis draw the following basic points:China's rural microfinance has made great progress from introduction to now a comprehensive trial promotion, and solves the financial needs for development of peasants to some extent; however, there are still many problems in risk prevention, interest rates, regulatory and other policy support which restrict its development. The phenomenon that financial institution unwilling to loan, while peasants can not credit is still outstanding.Chapter V:Empirical analysis on Chinese peasant credit needs. This chapter based on the perspective of peasants, through the investigation of credit condition fo the peasants from the Maoming City, Guangdong Province, and analyze the economic behavior and household credit demand characteristics, uses the Probit model and Tobit model to analyze the relationship between credit demand of the peasants and the exogenous constraints from lending institutions, and uses questionnaires and balance method to estimates the capacity of peasants to credit interest rates separately. The empirical results shows:Chinese peasant has high credit demand, but mainly due to high interest rates, collateral conditions and short term effects, the effective demand is inadequate.Chapter VI:Empirical analysis of China rural micro credit supply, based on the perspective of microfinance institutions, This chapter takes use of the statistics of Maoming City, Guangdong Province to first of all, introduce the matching result between the present condition of the demand and supply of peasants'microfinance, to analyze the financial income and transactions costs of the peasants'microfinance, and thus use the breakeven rate model to estimates the minimum lending rate MFIs can withstand, and through compares among the breakeven interest rate, the actual implementation interest rate and peasants-afforded interest rate to analyze the various factors that affect peasants microfinance interest rates. The empirical results show that:there is a mismatch between the supply of rural credit cooperatives of peasants and peasants microfinance credit demand; in order to realize sustainable, high interest rates needed to break even in the current situation, which far beyond the capacity of peasants; the core reason for the high interest rates caused by the credit cost ratio of operating costs and the high rate of credit risk caused by asymmetric information.Chapter VII:Rural credit system and peasants household micro credit. This chapter reviews the domestic and foreign rural credit system research and practice, analyzes the problems, propose ideas and design framework for the construction of a standardized household credit management system and empirically analyze the role of peasants household credit management system. According the analysis,we come to the following conclusions:The lag construction of the rural credit system restricts the development of microfinance peasants, the establishment of a standardized peasants'household credit management system can effectively solve the problem of information asymmetry, thereby reducing peasants'microfinance transaction costs, so that the microfinance can develop sustainable under the interest rate affordable for lending institution and peasants, and to achieve the fundamental purpose of 'double surplus' of microfinance institutions and peasants.Chapter VIII:Selection of the effective mode of China Rural Microfinance. To put forward the idea of build the peasants' household microfinance with Chinese characteristics. The main points include:(1) to put forward a point of view generally that construct a effective mode can simultaneously achieve the sustainable "win-win" goal with poverty alleviation and sustainable development of the microfinance institutions.(2)based on the basic principles, to raise a point of view that' wide coverage, general benefit','payable, sustainable','low-cost, common development','heavy incentives, guaranteed','strong supervisory, keep robust'.(3) based on the development mode, to choose a a quasi-market and quasi-public welfare institutionalism microfinance mode which between the welfare state and commercial institutionalism.(4)to raise the point of view that 'organizational system+multi-channel diversified funding sources+peasant household credit system+moderate rates of microfinance+credit insurance+policy support+prudential supervision'in the run mode.(5) Based on the operational mechanism, to describe the specific operating mode of the market access and monitoring, lending operations and market protection and others of the peasants'household microfinance market.Possible innovations of this article are:fist of all, the use of econometric methods, and the data form the investigation directly or that from the Rural Credit Cooperatives of Maoming Guangdong Province, to take a more systematic analysis of the highest interest rate the demand side affordable and the lowest lending rate the supply side acceptable, which comes to a conclusion that the actual implementation of the rural household microfinance interest rates is higher than peasants' expected while lower than microfinance institutions' expected, so that we should explore a reasonably acceptable equilibrium interest rate range which acceptable for both supply and demand sides. This essay disagree the more popular viewpoint that farmers can withstand high interest loans, neither the viewpoint that microfinance institutions can achieve sustainable in the low interest rate loans.Secondly, in order to more effectively address the problem of information asymmetry, thereby reducing operating and risk costs of microfinance, and achieving sustainable development of it. This essay takes the use of the standardize Rural Household Credit Management System in Maoming Guangdong Province, which the authors participated the establishment into the rural household microfinance study. Differ from the existing credit information system, the advantages of the system referred before are it collects the information in unit of "household"(rural household) but not in "person"(individual), it uses unified household credit data element standards, and also takes the use of both bulk import and manual entry mode, moreover, it can carry out a scientific evaluation in peasants'credit automatically.Thirdly, based on the current situation of" rural areas, agriculture, rural areas and peasants " and MFIs in China, this essay, firstly proposes the point of view to construct a quasi-market and quasi-public welfare Chinese rural household microfinance mode which between the welfare state and commercial institutionalism, and the introduce of its operational framework detailed, which is the mode "organizational system+multi-channel diversified funding sources+peasant household credit system+moderate rates of microfinance+credit insurance+policy support+prudential supervision".Inadequacies of the article may be:To comprehensively and systematically figure out the Chinese rural microfinance issues requires a lot of researches and extensive data collection, but due to the restrictions on the conditions, it's very hard to get a comprehensive system of data and relevant data, thus this essay only take Maoming City, Guangdong Province for example, which has certain limitations. At the same time it is difficult to carry out research on peasants microfinance interest rates by a full quantitative analysis. |
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