Study On The Capacity Factors Driving The Growth Of New-type Rural Financial Institution

Lack of long-term supply of rural financial services hindered China's Rural Reform and Development. The Government encourages the development of new rural financial institutions with a positive and relaxed policy to compensate for the lack of rural financial services. However, new-type rural financial institutions in our country are weak, their Ability to adapt to the market is weak, so their role in easing the financial problems in rural areas is still limited. This paper argues that Relying solely on policy supporting can not solve the fundamental problem, The key is to enhance the internal core competencies of the new-type rural financial institutions. Therefore, it is necessary to study deeply on the mechanism of Ability driving the growth of new-type rural financial institutions. Thus, provide the existing targeted policy recommendations for the government in stimulating the role of intermediary organizations.Starting from Enterprise Competence Theory, This paper creates a new perspectives and methods in researching new-type rural financial institutions. This paper builds a ability system for growing of new-type rural financial institutions. On the basis of analyzing ability system, this paper divided the in-house capacity of the new-type rural financial institutions into three levels:the level of resources and infrastructure, the level of business and technical and the level of product and service. Then this paper analyzes the reason of missing ability, the means of obtaining the ability, and the mechanisms of ability driving the new-type rural financial institutions. Secondly, this paper uses the method of empirical analysis in researching new-type rural financial institutions. This paper construct capacity model of driving the growth of new-type rural financial institutions, and make an empirical study based on panel data of 478 samples of MFI to test the effect of capacity factors to the growth of new-type rural financial institutions.On the basis of theoretical analysis and empirical analysis, this paper comes to conclusions as follows:The ability of financial security, asset utilization, risk controlling and cost controlling have a significant role in promoting the growth of new-type rural financial institutions; New-type rural financial institutions exists economies of scale; There is no conflict between social performance and financial performance of new-type rural financial institutions. To provide financial services to rural poor can also promote the growth of new-type rural financial institutions; Internationally, the national economy is more developed, the more inadequate of the growth of microfinance institutions, it can also reflects that to developed countries as European and American, the growth of china's new-type rural financial institutions has a better environmental conditions.