On Status Quo Of Microfinance In Rural Areas Of China And Corresponding Suggestions

Along with their successful promotion in developing countries in recent years, our government show more concern to Microfinance. After more than ten years of development, small-amount credit loans in the countryside of our country have achieved remarkable economical effects in alleviating the contradiction between currency supply and demand of the rural financial market, widening the capital utilization channel of the credit association, and optimizing rural financial structure. But up to now, the status quo of Microfinance can not still meet the demands of the quick development of social economy. In order to promote the economical development in the western backward areas and countryside of China, and to pull the low income population in these areas into the track of national economical development so that they can share the joys of economical growth, we need bring into full play of Microfinance.The challenges we are facing now are various and in order to promote the sound development of Microfinance we should create a healthier social environment. The thesis, based on the situation for which the issue concerning agriculture, countryside and farmers are proposed, will give an explicit elaboration on the definition, function, development and developing pattern of Microfinance. Furthermore, the status quo of Microfinance and the reason why Microfinance are developing slowly are analyzed. And lastly, corresponding suggestions will be given.Main conclusions of this thesis: In our country, Microfinance develops slowly. Nowadays, the GrameenBank' s patterns are used widely. But, it hash' t coped with our rural economy' s development. In order to promote the economical development in the countryside of China, and to pull the low income population in these areas into the track of national economical development so that they can share the joys of economical growth, this thesis suggests that it is necessary to build many arrangements of Microfinance' s carries. The RCCs and postal service' s banks will become its principal part. Secondly, the marketing operation will be the trend of Microfinance' s development. Also it is impossible to promote its self-control, integrity its risk monitor system, strengthen the credit control process. At last, the government' s positive support and a good external circumstance can also advance its growth.This thesis' s new opinion: 1 Much research has been made to analyze the risks of Microfinance in China, as the risk can be used a research aspect. 2 It analyses both the role of government in rural finance and the role of market in finance. It is necessary for government to play an important role in rural finance. In the mechanism of Microfinance, the cooperation among government and financial institutions will promote its development.