Study On The Development Of Microfinance System In China

Poverty,is one of the "3P" issues(population,poverty,pollution),especially is the enormous problem that developing countries are facing now.With all the countries making great efforts to develop the appropriate ways to support the poor, microfinance has emerged.After decades of development,with the successful implementation of a series of financial innovation measures,microfinance agencies obtain a win-win achievement both in the funds shortage of poor households and the self-sustainable development of the financial agencies.In some developing countries it has succeeded in supporting part of the poorest population to get the basic means of subsistence,and improve the living standards remarkably,to promote social harmony and stability.It's universally acknowledged that microfinance has achieved tremendous successes a new type of financial means.The United Nations regarded the year 2005 as "International Microfinance Year".In 2006,Grameen Bank(GB) and its founder Muhammad Yunus has obtained the year's Nobel Peace Prize due to the reason of "Only when most of the population find a way out of poverty,the lasting peace can be achieved".From the early 90s of last century,China began to learn and use some successful experiences in microfinance from some other developing countries.The government now pay more attention to the role of microfinance played in providing the poor in rural areas of China,in "China's poverty alleviation and development outline(2001-2010)" and the No.1 files of the central committee and other important documents,this effects are mentioned repeatedly in the past several years,and also stressed the need to develop the microfinance under the precondition of guarding against financial risks.The People's Bank also issued a series of policies to support the rural economics and increase the farmers" revenue.Early in 2000 the People's Bank Head Office issued a "rural credit cooperatives farmers' UNPROFOR loan management guidance" and "rural credit cooperatives farmers small loans management provisional regulations",and the microfinance and farmers' UNPROFOR were put into practice in most provinces and regions,starting the process of developing and generalizing the microfinance among the formal institutions in China.The microfinance has been developed for more than ten years in China till now, and carried out a series of attempts,including establishing village banks in recent years,to encourage the foundation of microfinance companies,and even introduce foreign funds into the microfinance business and so on;there are also some success cases among those.But overall,microfinance developed not so well,the rural financial market still hang behind,farmers' demand for funds is far from being met. As the government paid more attention to the development of countryside recent years in China,the rural society appears to be a new face of booming and flourish.The demands on financial services have also been changed in rural area.How to develop the China's microfinance to meet the new demands and to create an influential and sustainable microfinance institution? How to make microfinance deep into the financial system as a whole,to form a complete and effective microfinance system? These are the issues the author wants to explore in this thesis.This thesis is divided into five chapters.Chapterâ… is the Introduction,including the background of this topic, significance,literature review,the basis of the study,the research methods and the content also the framework arrangements.Chapterâ…¡introduces the theoretical basis for this study;it is generality of microfinance,including the definition of microfinance,emergency,development and the general operation principles and measurement standard of its function.Chapterâ…¢introduces the history and current situation of microfinance in China, and also analyzes the effectiveness of microfinance using the measurement standard.Chapterâ…£does case analysis on two successful typical models of microfinance and then compares the two cases to the practice of microfinance in China to discuss its apocalypse and significance for China on the development of microfinance.Chapterâ…¤has been put forward some recommendations to ameliorate the status of microfinance in China.It mainly centers on the general benefit and sustainable development system,and expound from three aspects:improving the external financial environment,building diverse microfinance financial institutions and supervision systems to serve different levels of customers.Microfinance is a popular issue in recent years.The theoretical research in this area has developed fully.Based on the above mentioned research,this paper collected data to organize and analyze,and then put forward some recommendations.In this paper,the author bring forward some new standpoint that is the microfinance in China, should be combined with the idea of "general benefits financial system" that advanced by United Nations in 2005 "International Year of Microfinance",to establish a general benefit,multi-level,sustainable rural microfinance service system and monitoring system.