Development Analysis Of Microfinance Industry In Shenzhen

Microfinance has always been regarded as an effective means to assisting the poor, its origins can be traced back to the foundation of the Grameen Bank of Bangladesh in 70s of last century. When the demand for loans in poor communities can not be met by formal financial institutions, the micro-credit institutions help the individual operators in urban and rural areas increase their income or achieve the funds for entrepreneurship by providing short-term micro-credit, savings and other financial services. This model was quickly extended many developing countries in Asia, Africa and Latin America.Since 2005, some provinces in China have begun to set up some small loan companies, and make an impressively success. The characteristics of small loan companies such as, Flexible mechanism, considerate service, can be used to achieve more take information of local clients for those who has no valuable collaterals to apply for loans in the formal financial institutions and offer them loans. Under the tightening influence of the monetary policy, the emergence of small loan company is a gospel for those SMEs who are badly in need of funds in Shenzhen. Small loan companies in Shenzhen will not only provide necessary funds to operate and develop for SMEs to survive and strengthen, but also stimulate domestic demand employment effectively and promote social stability and the development of economy.This article analyzes the current problems exist in small loan companies on the basis of existing models under the guidance of policy and theory of small loan companies at home and abroad. Small loan companies, such as high loan balance per household, the pilot deviated from the original intention; as embarrassed by the multi-limit; the Nature there is a dispute, the regulatory responsibilities are difficult to match; risk control is a weaknesses; limited financial resources difficulties in the follow-up replenishment; the low quality of employees and so on. Through learning the successful experience abroad, to improve the development of small loan companies in Shenzhen further, actively explore the optimal path for development from the theories. Proposing to sort out the design for system, development, try to provide relevant theoretical and practical basis for decision-making to promote the development of small loan companies in the coming days.