The Study On The Influence Factors And Countermeasures For Sustainable Development Of Rural Microfinance

Microfinance is a special form of credit to provide direct loan capital and the comprehensive technology services to poverty-stricken population in a certain region, according to specific objectives and particular institutional arrangements. Microfinance, the organic compound which integrated the organization innovation, financial innovation of credit activities and the projects of helping the poor households, played an important positive role in promoting harmony development of social equity and economic efficiency in historical process. How to promote the sustainable development of rural microfinance in order to share achievements obtained from the reform and opening up, social development among poor farmers is of great practical and theoretical significance for the creation of a harmonious society.Sustainability of microfinance includes institutional sustainability and financial sustainability. Institutional sustainability refers to all institutions to provide credit services to their own income generated to cover its operating costs and capital costs. Financial sustainability is no need an external institutions to provide special funding conditions to achieve the capacity of self-survival and development, and its operation can be divided into two levels of sustainable and economically sustainable. Considering the important status of financial sustainability in the meaning of the sustainable development of microfinance, this paper will focus on this aspect.This paper, using many concerned theories such as monetary and finance, commercial bank management, and corporate finance, think that realizes the sustainable development of microfinance in rural areas, essential condition is the jot credit income can cover complete cost of operation including the fund cost, the overhead cost and the loan loss cost. Indicators of measuring the rural microfinance sustainable development degree mainly include operation self-sufficiency rate, financial self-sufficiency rate, subsidy dependence index (SDI), subsidies dependent coefficients (SDR), the sustainability of the sector of interest rates, operation allows interest rates, economic allows interest rates, operating sustainable ratio (OSR) and economically sustainable rate (ESR),etc.From the operating revenues and costs, business risks, policy and law, management and technical aspects, this paper analyzes the influence factors on sustainable development of micro-finance measures put forward specific proposals. From the external environment and policies and internal mechanisms of microfinance institutions, this paper put forward specific proposals about countermeasures for sustainable development of rural microfinanceThis paper mainly includes the following:Chapter 1 is an introduction. This part will be strictly in accordance with the methodology of economics route, step by step made the background and significance, literature review, research contents and methods, the possible lack of innovation.Chapter 2 discusses the micro-finance basic theory of sustainable development. This chapter will first give the definition of micro-credit to introduce the characteristics of microfinance and discusses the theoretical basis, and finally discusses the basic theory of sustainable development of microfinance.Chapter 3 analyzes the status of the sustainable development of rural micro-finance. This chapter analyzes the international sustainable development of rural micro-credit status and the sustainable development of micro-credit status.Chapter 4 analyzes of the sustainable development of rural micro-finance factors. From the operating revenues and costs, business risks, policy and law, management and technical aspects, this chapter analyzes the influence factors on sustainable development of micro-finance.Chapter 5 discusses promoting sustainable development of rural micro-finance response. This chapter discusses on the promotion of sustainable development of rural micro-finance and countermeasures analysis of these responses.Chapter 6 concludes the paper, and draws the conclusion. The chapter points out the innovations and shortcomings, and future research directions.This paper can draw the following conclusions:First, rural micro-finance is specifically for rural people, especially poor farmers and rural small businesses to provide the continuity of the small amount of credit products and services.Second, China should realize the sustainable development of rural micro-finance, micro credit, the key is to be able to cover the income including capital costs, operating costs and loan loss costs, including all operating costs and achieve financial sustainability.Third, the influence factors of sustainable development of rural micro-finance include many factors. From operating income and costs, operating risks, policies and laws, management and technical aspects, analyzes the influence factors on sustainable development of micro-finance. Specific factors which include low interest rates microfinance, microfinance operating costs are too high, microfinance face greater financial risks, limited sources of funding micro-finance institutions, micro-finance funds in short supply, micro-finance institutions lack the legal status, internal governance structure is irrational, so the low level of management and technology.Fourth, to promote the sustainable development of microfinance institutions countermeasures include improving internal governance structure, promote the interest rate reform progressive, multi-channel expansion of micro-credit financing and sources of income, improve risk management, improve legislation and to strengthen financial regulation and so on.Fourth, to promote the sustainable development of microfinance institutions countermeasures include the maximum interest rates gradually relaxed, step forward interest rate market, to guide the various financial institutions, to attract various forms of capital, the development of rural micro-credit operations, broaden sources of funding,to create an enabling sustainable development of rural micro-finance risk compensation mechanism, strengthening microfinance in rural areas is conducive to sustainable development of the legal system, improve property rights and governance structures to the needs of farmers for the center design of products and services, take advantage of the small credit risk management of the operating mechanism.About sustainable development of microfinance, there are many issues that need further discussion and study. For example, how to promote microfinance interest rate market problems, microfinance institutions and organizations, regulatory standards and methods, microfinance institutions deposits of the license conditions and so on. These questions are not possible to present a complete solution, only with the development of microfinance practice of studying the solution. We also need to continue to work hard.