Small Loan Company Operating In Sichuan Province And Sustainable Development Problems

In recent years, a large number of commercial banks withdraw from the rural market. SMEs and agricultural credit demand for funds are difficult to be met. To enhance the capacity of rural financial services, small loan company pilot launched in Sichuan province. In 2008, the Sichuan provincial government decided to expand the small loan company pilot. G small loan company came into being in Mianyang city.G small loan company has played a positive role in the development of agriculture and SMEs. But it also exposed a series of problems to be solved.This paper analyzes the small loan company from theoretical aspect as well as practical aspect. Chapter one illuminates the established background and function of the small loan company, following which chapter two illustrates the system design and the situation of the small loan company in Sichuan. Chapter three illuminates and analyzes the operation of G small loan company. Chapter four analyzes the advantages and disadvantages of G small loan company. Chapter five introduces the successful experience in international and domestic areas; at last this paper gives the recommendations on how to promote the sustainable development of the small loan company in Sichuan. Main points are as follows:First, the small loan company has played a positive role in the development of agriculture and SMEs.Second, the small loan company has the possibility of sustainable development. It can achieve the commercial development on the basis of continuous improvement.Third, the small loan company also exposed a series of problems to be solved. The Government should clarify the status of the small loan company, strengthen its regulation, and gives more supports. The small loan company also should make reasonable operational planning, clarify market positioning, increase support for agriculture, guard against the risk and strengthen financial product innovation.This paper is innovative in following aspects:First, this paper analyzes the small loan company from theoretical aspect as well as practical aspect. It sorts out the advantages and disadvantages of G small loan company.Second, the paper gives the recommendations for how to develop the small loan company in Sichuan province.This paper also has some deficiencies:First, due to the absence of data, the depth of paper needs to be further strengthened.Second, as a result of the author's lack of practical experience, proposals may be not practical, which need to work in the future and learning to enhance and improve continuously.