Exploration On The Development Models And Countermeasures Of The Microcredit In The Rural Areas Of Shaanxi Province

For a long period, how to provide financial services to the rural population during the process of economic development are all the challenges faced by the government. Because of the unique weakness of agriculture, rural financial markets are generally resulting in failures. Thereafter financial institutions as well as the traditional credit do not consider agriculture and farmers as ideal financing targets. Since the existence of microcredit in 1970s, it was proven by the economic development histories of developing countries that microcredit is an effective manner for poverty alleviation, employment promotion. Microcredit, as a new type of financial means, has drawn a wide attention around the world, and is gradually receiving more attention and promotion.At present, microcredit is playing an irreplaceable role in solving the unavailability of credit and increasing the income to alleviate poverty for famers. However, the problems of microcredit developments in China still exist. The status of microcredit still can not meet the requirements of socio-economic developments. And the sustainable development issues of microcredit have been to be addressed urgently. Such issues can be as follows: 1) the nature of microcredit provided by the non-financial institutions has been no conclusion; 2) the rural credit cooperatives alone are only the formal financial institutions to support the loans to farmers in rural areas; and 3) the rural credit cooperatives are accompanying with the issues such as lack of funds, high risks and management difficulties during their rapid promotion processes. All these issues will decide the existences and developments of these financial institutions. And they will affect the orders of rural credit market and sustainable developments of microcredit in rural areas as well.Based on employing the sustainable credit services provided to famers as a starting point and borrowing the international successful practices, the target model and guarantee system of microcredit in rural areas was designed to address the existing issues during the promotion of microcredit among the famers in Shaanxi Province in this paper. The research object and meaning of this paper was explained firstly. Then the related theories and the development stages of microcredit, especially the status and operation mechanism of microcredit in rural areas of Shaanxi Province, was analyzed. Meanwhile, the restraining factors of microcredit in rural areas of Shaanxi Province were pointed out. After that, the paper proposed the existing microcredit agencies such as agricultural banks, rural credit cooperatives and postal saving services in chapter four. And rural credit cooperatives were proved to be the main forces of microcredit in rural areas. Finally the countermeasures and suggestions for the promotion of microcredit were presented. All these will target to present more rational researches and explosions for the practices of poverty alleviation policy in our country, and will help to build new socialist rural villages that are some of most important components in a socialist harmonious society.