The Problems And Solutions In The Development Of The Rural Microcredit In Chongqing

As a flexible way of credit loan, microcredit has played a catalytic role in the overall economic development of the rural areas, it is obvious to all, microcredit is one of the innovative results from traditional means. In 1993, Rural Development Institute in Chinese Academy of Social drew lessons from the microcredit of Grameen Bank model, they used the loans which provided by foreign institutions and domestic special poverty alleviation fund, and respectively tested in Henan, Hebei, Shanxi and other provinces to obtain a success. At present, there are the main three microcredit categories in China according to the lending subjects: one based on international funding sources of funds, it is private or semi-official and semi-public organization and microcredit institutions for the operation project; one category is which the sources of funds come from the state funds and poverty alleviation loans, and which move and operate depended on government agencies and financial institutions policy for the operation of the microcredit sector poverty alleviation projects; there is a class of rural credit cooperatives, which depend on the central bank re-deposit and loan funding to institutions for the operation of rural credit cooperatives Small farmers and the Union of credit loans. May 2008, the CBRC and the People's Bank issued "the guidance for microcredit company to pilot ", the core content of the pilot views is that the permissions of the small loan company pilot is put to the various provincial governments. Microcredit is an important breakthrough in China's financial system, it certainly bring financial services, process and product innovation. From the beginning of the pilot in microcredit to the promotion of microcredit ,in the country a large number of rural banks, microcredit companies, microcredit organizations, governments and civil society emerged, and they also innovated the business management. Practice has proved that microcredit played a positive role for improving the income of low-income in urban and rural areas. But, we have to see that in the process of development of microcredit, there are many issues which still restrict the high-speed development of microcredit.In this paper, I discussed the problems in depth based on previous theories. Main content is divided into four parts: introduction, theory, empirical and Countermeasures. The first part mainly introduced the research questions and background, and focused on the problems and the background of problems in the time and in the space, research objectives and content, and research methods. The second part described the theory, focusing on establishing the theoretical basis ,the development of microcredit and the actual research situation and the foreign successful development of rural microcredit experience. The third part was about the development of rural microcredit status, problems, cause of the problems ,the impact of microcredit and the discussion about other issues in Chongqing. The fourth part was research findings and policy recommendations from the combination of the previous theories and the practical situations .The main conclusion: As the various policy and practical reasons, the development of rural non-formal and informal microcredit in Chongqing is restricted, it can not form a competitive situation with each other, but also be lack of the internal risk control measures and the external monitoring mechanism. That making the development of microcredit in rural areas can not be sustainable, and can not form a stable and long-term support for the rural economic development.Based on the conclusion, this paper gives some policy recommendations: the rural microcredit risk prevention and management measures should be strengthened to achieve the sustainable development of the rural microcredit; government should open the policy and the law of restricting the development of microcredit to make the rural microcredit develop according to the market rules; the innovation of microcredit products should be based on farmer demands and this make microcredit play a greater role in the development of rural economic; laws and regulations should be established and improved and the monitoring mechanism also be improved to make the rural microcredit be developed healthy in the improving legal environment.