Study On Sustainable Development Of The Microfinance Institutions

It's widely accepted that poverty should be alleviated, since harmony is beneficial for everyone. After its founder Yunus won 2006 Nobel Price for Peace,microfinance has also prospered in China. Sustainability for microfinance institution especially has become the hot. For one thing, it is the history choice for microfinance development; for another it is the need for itself.At first, this paper introduced the background of the study;researches on this topic;its content, methods, innovation points and shortcomings. Then, this paper firstly analyzed the microfinance institutions'exterior factor, i.e. financial ecological environment, for its sustainable development. As a financial ecological agent, microfinance institution has a close relationship with its environment. This paper applied positive analysis and normative analysis to present, analyze and solve the problem. Firstly, it stated the importance of financial ecological environment for microfinance institution with an example. Then it analyzed its financial ecological environment in China in detail. It used methods of Factor Analysis and AHP to establish an evaluation system for microfinance institutions'financial ecological environment. This is the most important part of this paper. Through the analysis of evaluation system, this paper offered solutions to perfect the financial ecological environment and posed the pattern of commercialization of microfinance institution. In this way, microfinance can serve people and enterprises, without capital but with productivity, better.