China Microfinance Development Research

Micro-finance is a broad meaning of micro-credit.Traditional subsidized credit can't effectively allocate the credit resources to the target groups-the poor and the micro-enterprises.At the same time,subsidized credit is faced with problems of inefficiency,low recovery of funds,and deeply dependence on external funds and so on.And the reform of market orientation then only makes the poor away from financial institutions. Micro-finance is a very useful exploration for the financial deepening and development.And lots of cases in many countries develop successfully, such as Grameen bank in Bangladesh,BRI-Unit,Bancosol in Bolivia, FINCA-VB,and so on.Micro-finance has been developed rapidly in China since we carried out micro-credit with reference to "village bank" in Bangladesh in 1990s.Since 2005,China put more and more attention to micro-finance in resolving the issue of China's rural financial.The CPC Central Committee and State Council's "Document No.One" pointed out: "with the premise of strengthening supervision and preventing risks,to speed up the development of various new-type rural financial organizations and the small and medium-sized regional banks which mainly serve to the rural areas,to encourage and support the financial institutions to innovate the rural financial products and financial services,to develop micro-credit and micro-financial services,rural micro and small financial institutions can finance through a variety of ways from financial institutions." Therefore the research on the issue of China's micro-finance development has important practical significance.But micro-finance development in China is still in the initial and immature stage,and exist many difficulties and problems in theory and practice.So,the research of micro-finance development in China also has important theoretical significance.The paper takes the issue of micro-finance development as study object, including macro and micro level in micro-finance development.Combining the theory research with positive analysis,quantitative analysis with qualitative analysis,inductive contrast with conclusive analysis,the paper mainly studies the legal system and the external monitoring system in micro-finance,the technology of micro-credit and the government role in micro-finance development.Eventually,the paper focuses on the problem of micro-finance development in China,and considers that China should intensify the legislation for the micro-finance,and establish legal status for the microfinance institutions.This paper creatively puts forward the supervision framework for the microfinance institutions in China,and considers that China should speed up the pace of market-oriented reform of interest rates and relax the area of micro-finance restrictions on capital access,make great efforts to cultivate microfinance institutions and services for the promotion of rural financial deepening and development.In the end,the paper elicits a simple framework with China's inclusive financial system.