Research On China's Rural Microfinance System

In China,the agriculture-base country,major part of people populate in broad countryside.According to the statistics,20 percent of the population belong to the low-income group,most of whom are from the countryside.So"Three-Agriculture Issues"is the important issue that affects the development of our country and it has also become one of the most important issue that our government is concerned about and wants to resolve since the Open-door Policy.How to increase the farmer's income is the way to resolve the issue.International and domestic experience prove that rural microfinance is an important financial service that can promote the countryside's economy.In 1999 the People's Bank of China began to popularize rural microfinance in our country's rural credit cooperatives.The service has developed very quickly and has gained some achievements.However the present development situation of rural microfinance cannot meet the demand of agriculture economy development,there exist many problems,such as the deficiency on loan system,the low lending-rate,the deviation of legal status,lack of constant supervision and management.All these problems influence the long-standing development of rural micro finance.Meanwhile, insufficient capital,high risk,difficult management,and obsolete service all confine the existence and development of this micro financial organization.Whether these problems should be soundly solved will affect not only the survival and development of micro financial organization,the supporting safeguard for the peasant to increase the income,but also affect the rural credit market order and the continuous development of the system.Therefore this paper detailed analyzes the existing problems and risks of the rural microfinance system,puts forward methods and measures to solve these problems, provides the feasible suggestions for the healthy and sustainable development of China's rural microfinance.