Study On The Development Of Microfinance In Rural China

At present, micro-credit financial implications contained in Chinese rural areas the financial sector is playing an increasingly important role, is an essential mean for the development and booming of Chinese rural economy. The paper takes the basic theory of micro-credit financial in rural as the instruction. The central government releases a series of policies in supporting and beneficial agriculture, in order to solve the three rural problems and build socialism new countryside. In 1993, The first specialized micro-finance organization was founded by the development institute of the Chinese Academy of Social Science in 1993. In order to ensure microfinance organization of steady development and solve the rural finance deficiency problem, based on the research of micro-finance company business models from abroad, the article puts forward an argument of the multiplicated operation of micro-finance organization, that is, Public interest model of micro-credit organization (including:non-governmental micro-credit to help the poor and the policy-oriented micro-credit projects helping the poor); Model of government financial institutions (including: formal financial institutions providing micro-credit such Agriculture Development Bank, Agriculture Bank of China and the Rural Credit Cooperatives as the main body); Micro-credit company model (including:the Rural Micro-credit Company and the Towns and Villages Bank, the Rural Finance Assistance Unit). Through building a comprehensive information platform based on the entity organization, which will help the micro-finance organization monitor activities of customers from getting loan to repaying loan in whole process and reduce the operational risk of the organization. At the same time, through assisting loan clients to settle problems of production or management process by micro-loan users, achieve win-win situation. In a word, Micro-credit is a useful complement of rural financial in china. It can help low-income people improve their lives, help small businesses grow gradually, especially for the three rural development provide effective financial support and is conducive to a harmonious well-off society.