Research On The Operation Pattern Of Micro-finance

Relative to the development of urban financial market, the rural financial system has been restrained. Lack of capital seriously restricted the development of rural economy. Because of low income of rural peasant, the development of rural economy confronts the situation that there is no adequate capital. The modern financial institution and the traditional institution both exist, which results the credit fund can not operate effectively.Micro-finance is a special tool which has been paid more and more attention. The system of micro-finance can offer the power to the rural economy. The beginning of the micro-finance is to help the low-income groups and increase the income by getting loans, and the focus is poverty relief. In the recent years, micro-finance has already become one kind of special financial instruments, and not only pays great attention to its social poverty relief effect. In the past 30 years, it expanded its business to save-loan, insurance, fund and so on. Grameen Bank, BRI, BancoSol bank and American community bank gave us a lot of experiences. The developing model of Grameen Bank was the first model we applied. We always explore the mode which adapts to the situation of China. It appeared the micro-finance in Postal Savings Bank of China, village bank and community bank, but still has some problems, such as interest rate, risk management and control.As a kind of systemized finance innovation, micro-finance has its origin in the experiences which developing countries and policy banks loan to the poor and micro-enterprises. As an effective tool to alleviate poverty and develop finance, micro-finance has been accepted by more and more countries in the world. In recent years, its function of alleviating poverty, supporting microenterprises to develop and solving unemployment problems become more and more obvious. With diversification of finance sources and extension of institution scale, many problems about microfinance supervision float out to the surface gradually. Because of the different risks between microfinance institution and traditional commercial bank, how to fix microfinance a suitable position in law and execute effective supervision becomes an important subject worthy of studying. It includes not only the innovation of supervision system, but also the construction of microfinance law.