Research On The Sustainable Development Of Rural Microfinance In China

Micro-credit is a popular way for poverty alleviation in the world. It is a special financial instrument that supplies financial services to the poor people to help them alleviate poverty. Since it emerged in Bangladesh in 1970's, micro-credit has spread all over the world. As one of the most effective tools of poverty reduction, micro-credit is characterized by reaching the family effectively and helping the poor live on their own effort.Micro-credit came from Bangladesh 1970's, while China took it into practice in September 1993. Because we haven't paid attention to the finance service function, there is almost no breakthrough in its sustainable development, which is harmful to the sustainable development of micro-credit and the poverty alleviation.The experiences demonstrate that the micro-credit instruments can realize their sustainable development, if only it is based in a commercial way. Furthermore, the paper indicates that the essence of the micro-credit should be commerce loans and the market is benefit for its sustainable development. In the mean while, we point out that more financial institutions should be introduced to rural financial market. The small amount institution should be standardized and the delivery systems of joint-guaranteed credit improved. Then the paper discusses how to determine the interest rate. The paper points out that micro-credit not only can help the poor, but also can achieve its sustainable development.