Research On The Mode Of Rural Household Micro-finance Of Rural Credit Cooperatives

The task of alleviating poverty is extremely hard because our country has large number of impoverished people. Since the reform and opening policy, our country has obtained great achievement in poverty alleviation under the leadership of our government. However, when entering the new century, the situation changed a lot, specifically, the impoverished people are more dispersed and their living conditions are even tougher. Therefore, on one hand, we must make sure that the fund can get to each village and each household, on the other hand, the self-independent ability of the households should be cultivated. China's rural credit cooperatives are widely distributed in the vast rural areas. Its rural house micro-finance doesn't only adapt to the distribution of rural households, but also characterized by reaching the households effectively and helping the poor live on their own effort. Nowadays, regardless of the scales and the range, the rural household micro-finance of rural credit cooperatives has exceeded our existing two other types of micro-finance projects .We can predict that the rural household micro-finance will be an effective tool for poverty alleviation in our country. Meanwhile, it is of great importance to carry out the solemn promise that our country will solve the food and clothing problem in 2010. However, we should also note that because of the difference between economic development of rural areas and income level of farmers, a lot of problems appear in the promotion of rural household micro-finance of many rural credit cooperatives. Accordingly, it is of great significance to design the target mode of rural household micro-finance in response to the problems exited, which can guarantee the smooth operation of rural micro-finance and the realization of the poverty alleviation.The main purpose of the article is to design the target mode. In order to complete this task, we do research from both theoretical and practical perspectives by using the methods of comparing and contrasting, from commonality to personality, from individuality to commonality and the combination of quantity and quality.Firstly, the article introduces the theory of household micro-finance, and there are two mode theories of household micro-finance, one is institutional theory, other is welfare theory. The former emphasizes the durative of institutions, and the latter stresses the social service functions. Chinese scholars tend to instituionalism. Through analyzing, the article makes a conclusion that the durative of the institutions and social service functions are two aspects of micro-finance, which are not only connected but also in conflict with each other. As a financial system, micro-finance should be social and economic. The two parts are indispensable to the improvement and standardization of the micro-finance Therefore, the article argues that the target mode should be design to have both advantages, which can guarantee high repayment and the durative of institutions. This will be conducive to the development and growth of micro-finance institutions on the basis of survival.Based on the theories introduced above, the article studies the practice of the foreign modes and sum up the international successful experience. There are two theories on micro-finance modes. There are also two kinds of practical modes: GB and BRI-UDS. The two classic practical modes give us following enlightenment: adequate fund sources, credit product diversification, staff professionalism, pay attention to the training of farmers, sound incentive mechanisms, comprehensive information system of management and government support.The design of the target mode should adapt to the actual conditions of China. The article next analyzes the general conditions and the problems exit in the rural household micro-finance of rural credit cooperatives. Through research and discussion, we get the following conclusions: it is a correct choice to make rural credit cooperatives release money to the households, which also fits for the characteristics of China's rural economic development; deposits and loans for agriculture are two sources of fund, and mainly rely on the latter; there are no clear rules in micro-finance amount and limit, which can be determined according to the actual region conditions; the floating interest rate can not exceed by 50% percent; there are eight specific steps of operation, and all of them focus on releasing and using the micro-finance effectively; the rural household micro-finance of rural credit cooperatives has exceeded our existing two other types of micro-credit projects, which play a key role in micro-finance of China. However, a series of problems still exist in the course of popularizing rural household micro-finance, we must pay close attention to them. Through study, we sum up the following four parts: a lot of problems were left to the rural credit cooperatives by history; flaws exit in micro-mechanism design of micro-finance; the specific steps of operation are not standard; lack of protective measures.Finally, according to the principles of solving the problems and absorbing the successful experience, the article designs the concrete plans and the protective measures of the target mode of rural household micro-finance. In detail, we need to reform the rural credit cooperatives, design the micro-mechanism and the operation steps. Designing micro-mechanism includes arrange the amount, the limit, the interest rate, the credit evaluate mechanism and the capital collection mechanism. Designing operation steps focus on standardlizing the follow steps: set up the households'archives, evaluate the credit rate, supervise after release the micro-finance. The protective measures should be designed from both macroscopical and microcosmic aspects. The macroscopical aspect is to establish the legal, supervisory system and risk protection system. The microcosmic aspect is is to establish a bidirectional training system and a deposit insurance system.The innovations of this article are as follow:Firstly, the micro-finance was not released by rural credit cooperatives abroad, so there is no research in this area. The Chinese scholars mainly study on international aid organization and government micro-finance projects. Even though a few scholars study on this field, they generally inclined to a certain theory. This article argues that the target mode should have both advantages, which can guarantee the high repayment and the durative of the institutions.Secondly, the standard credit evaluate mechanism can reduce the risk of recycling the fund from the very beginning, which can also guarantee the continuable credit services to the households. Many Chinese scholars have raised the problems of faultiness mechanism of rural household micro-finance, but they did not put forward the proposals to solve this problem. The article makes an attempt in this field. Through learning from the "5C" classic theory of financial management, we design four categories and 11 credit evaluation indicators and build the credit evaluation system.The successful international experience shows that the use of micro-finance management information system can improve the quality of releasing and recycling the fund. At present, China has no specific micro-finance management software and few Chinese scholars study on this field. The article gives assumption of the system, the functions and the picture of data structure according the specific operation steps of the rural household micro-finance.