The Study Of Sustainable Development Of Microcredit Of China

Micro-credit has played an irreplaceable important role to poverty and micro-enterprise groups through providing necessary financial support, in the eradication of poverty and achieve common prosperity and increasing employment, and, especially in the structure of China's financial institutions increasingly diversified background, it has a positive effect on developing microcredit for optimizing the financial institutions business, enhancing the economic development of the financial service quality and speeding up the healthy development of financial institutions. However, due to various internal and external factors, the development of microcredit in China still faces many problems, especially in course of development, regardless of non-governmental organizations or formal financial institutions, sustainable of microfinance development is the most difficult problem. From the macro perspective, positioning error, the legal status, social credit system construction do exist; other issues exist on the microeconomic perspective, for example,the majority of microfinance institutions in the relationship between ownership is unclear, the source of funding is limited, lending rate is complex to be determined, the existence of these disturbing factors limit the expansion of micro-credit institutions operating enthusiasm on the one hand, some organizations devoted to the promotion and substantial business rarely carried out on the other hand, and it seriously hampers the the expansion of micro-credit business development .Faced with the obstacles encountered in the course of the development of China's micro-credit operations, only through researching and innovating theory, summarizing in the practice for the development of microcredit ,helping the healthy development of business policies provide intellectual supporting and enhancing small credit for the economic benefits of business before, can they go to the sustainability of development. In this paper , from the development of microcredit in China's background of the needs and reality, the foreign successful experience of the micro-credit, China's development of microcredit facing the predicament and the plight of its way out of a preliminary study of microcredit in order to achieve sustainable development. This is not only conducive to microfinance institutions'own survival and development, but also to improve financial markets, and promote economic development in poverty-stricken areas and to help low-income people improve the quality of lifes.This paper is divided into four chapters. The first chapter is study of the micro-credit theory. Including the concepts of micro-credit, the existence of the theoretical foundation, the role of economic growth and sustainable development issues. The second chapter is international comparison of business development. Firstly,it has introduced foreign microcredit business models of development. Microcredit organizations have variety of forms, this paper divides it into three categories, Bangladesh microcredit model, Indonesia formal financial institutions model and other micro-credit model. Bangladesh is the birthplace of microcredit and the universally acknowledged success of the operations, its domestic rural banks (Grameen Bank), the Rural Development Board (BRDB) have become an example ; The People's Bank (BRI) to the village of the system operations in accordance with the commercial operation of its micro-credit; some other countries change in accordance with its own reality. State-owned Development Bank of India, Africa and Uganda rural banking model run the more successfully. Second part is about reference of foreign microcredit operations .The success of microcredit operations need to highlight and emphasize the special attributes of Microcredit in many areas, we should adhere to the poverty population, clients, on a voluntary basis, the project team set up to establish market-oriented operation of non-governmental organizations,governmental and non-correctly handle governmental organizations. Chapter 3 is about the country's development of micro-credit and the existence of risk. First part is about the country's microcredit produced and development. The development has experienced four stages: project team credit and non-governmental organizations jointly operate microfinance pilot phase, the active involvement of Microcredit stage, the formal financial institutions began offering microcredit stage, microcredit rapid development stage; Secondly, the adjustments on the impact on the development of microcredit. The third part is about the country's micro-credit market demand and the major credit agencies. There are three kinds of microfinance institutions: government-run policy of microcredit projects, non-governmental organizations of the nonprofit micro-credit operations and informal financial institutions and new loans to small companies, and focuses on the postal savings bank microcredit business. Part four pointed out that China's macro level and micro-level problems and risks. The fourth chapter is about system innovation as an opportunity to speed up the development of microcredit operations. It first pointed out that micro-credit's health and sustainability of development is inseparable from the support of innovation and should be innovated from the financial system, financial instruments, organizational system, human resources and so on. The second part is policy proposals of China's micro-credit to the sustainable development. From the experience of international success of the business, the Government's financial policies and the country's financial reform are important and it will make a sound macroeconomic environment for micro-credit. Speed up institutional innovation is the guarantee of microcredit business.It's an important foundation for sustainable development, only through attractive savings and loan products and services, development of appropriate incentives and punishment of work, the establishment of an effective internal management and controlling system, can we achieve self-financing and sustainable development. Maintain the sustainability of microcredit development should be carried out in the following aspects: firstly, Clear responsibility of the government, and create a good external environment; secondly,adhere to the direction of the business, and speed up the pace of market-oriented interest rates, thirdly, Establish efficient information transmission mechanism and reduce the operating costs of microcredit;ourthly, speed up institutional innovation, improve internal management mechanism;fifthly, human resources development and management, make structural optimization of human resources...