Countermeasures Of The Rural Microcredit Of Shanxi Province During Development

Since the early 1990s and gradually promote of microcredit, microcredit in China has already achieved significant development, we can see microcredit in most parts of China. The most important reason of the rapid development of rural microcredit is on the demand of the farmers, policy support of nation on micro-credit is also necessary for the rural microcredit. The People's Bank of China has formulated the "Interim Measures of rural credit cooperatives about the rural microcredit " "Rural microcredit management guidance of rural credit cooperatives " in 1999 and 2000 in order to make sure that Rural credit cooperatives run microcredit and help them simplify loan procedures. The People's Bank of China in 2005 approved the establishment of five microcredit companies; this provided new ideas about development of the microcredit.Seen from the scale or the pace of development, rural microcredit in Shanxi Province is in a leading position compared to other regions. Rural credit cooperatives, non-governmental organizations and the two small microcredit companies provide small credit loans in Shanxi province. Various forms of microcredit make a tremendous contribution for the rural economic development and raising the income of farmers,but many problems appears during the development of microcredit: lack functioning market, laws and regulations of microcredit is lacking, credit system is imperfect, so much government's about microcredit, the sustainability of microcredit project is not enough, the interest rate is too low and interest rate decision mechanism is not flexible, lacking of professional personnel, internal management irregularities, a single source of funding. The above problems restricted the development of microcredit, smooth solve the above problems is the key to develop microcredit.Analysis the microcredit of Shanxi Province and lean from other areas'successful experience, we suggest that we should develop the microcredit of Shanxi Province in the next steps: improvement of the market economy, nurturing and orderly competitive environment, reorientation of government functions, actively to support the implementation of microcredit, strengthening the legal system to determine the microcredit, establish credit awareness, improve credit building, promote sustainable development of microcredit, determine a reasonable level of interest rates and flexible interest rate decision mechanism, improve internal management, strengthen personnel training, expand financing channels and stable source of funding.