Study Of The Rural Microfinancein In China

Microfinance is a financial instrument, services for low-income and disadvantaged groups. Microfinance has the characteristics: high repayment rate, successful business rate, households with high rates of capital. Professor Yunus founded the Grameen Bank which provided finance to low-income and disadvantaged women in Bangla.People get the money into production, eventually get benefits, farmers'microfinance in the implementation has achieved great success.This microfinance model of the banks in many countries and regions have also been widely promoted. Since 1993, China learn from Bangladesh Grameen Bank model , the use of domestic anti-poverty funds and foreign loans provided by microfinance projects undertaken with some success. Since 2000, formal financial institutions began to pilot micro-credit and its promotion, which marks the formal financial institutions in China for the development of micro-credit arose.This article is divided into five chapters, the first chapter describes micro-credit research status and research methods at home and abroad. China refer Successful experience of foreign countries to implement micro-credit, and it plays active roles in China's financial development and rural poverty alleviation projects. The second chapter describes the content of microcredit and its existence. Microfinance is the provision of low-income and disadvantaged groups sustained a small amount of financial service activities. Because the presence of micro-credit, the farmers get loans from credit institutions, will make private lending, usury gradually reduced, and to become prosperous farmers, is conducive to rural economic development. The third chapter describes the setting methods of micro-credit interest rates and why have high interest rates, focusing on microfinance's high-interest rate model of game theory analysis. The game theory is concerned that people in the other conditions of rational pursuit of maximum profits, and maximize their profits at the time how to consider each other's behavior. The fourth chapter is the analysis of rural micro-credit risk, through the analysis of micro-credit will find that there is much to be desired. Then on studing the micro-credit risk management, loan risk degree and risk benefits, relationship between the risk loss, with credit risk+ model and VAR model respectively measuring credit risk and market risk. The fifth chapter describes the game relationship between farmers and rural credit cooperatives, including the game under the conditions of trust and under the condition of incomplete information game analysis.