Research On The System Of Microfinance On The Basis Of Financial Symbiosis Theory

Muhammad Yunus, the initiator of the Grameen Bank of Bangladesh, and the Grameen Bank of Bangladesh, won the Nobel Peace Prize on October 13th, 2006. With the special mode and risk-avoiding system invented, Muhammad Yunus successfully managed the issue of offering the efficient loans, which can not be offered by the regular big financial institutions due to the small sum of loans and short term, to the poor, who may be landless or assetless in the country, to help them when they meet the capital problems. Due to the system's function of poverty-relieving, a lot of countries, especially the developing countries, pay great attention to the microfinance ever since. However, right now the basis of analyzing microfinance is on the historical process, not on the view of whole system. In order to contribution to the development of microfinance, the thesis uses the basic theory of symbiosis in the financial biological theory to analysis the weakness of the micro-financial institutions in the country in China, from the point of propriety, target of the loan, united surety, repayment term and the interest rate etc.The thesis reveals the systematic limitation of the system of microfinance used before in the country in China, such as the unclear target, and inflexibility of the interest rate, and the thesis point out that the creation of the system of the microfinance can help settle the problem above, and help to increase the number of symbiosis cells, improve the mode of symbiosis and better the rural financial environment, and thus balance the rural financial ecosystem. The paper at last set the example of Taizhou Commercial Bank as the example to illustrate the conclusion made.The last part of the paper emphasizes the conclusion and gives some suggestions in the development of microfinance in the future.