Study Of Rural Micro-credit A Number Of Issues

In order to resolve the problems that existed in our credit-poverty-alleviation policy, China began to introduce and practice the microfinance projects. China' s micro-finance is a kind of financial activity in the essence. Followed the Greenbank style china' s rural micro-finance adopted three basic procedures: stringent targeting of the poorest, mutual assistance group, frequent loan repayment intervals. Comparing with China's existing rural financial market and credit-poverty-alleviation policy, China s rural micro-finance is really a kind of financial innovation, but only a imperfect one for its single objective to alleviate poverty and lack of sustainability. In fact China' s rural micro-finance is more like governmental short-term activity to some extent.The impacts and sustainability are two critical factors to determine the long-term operation of microfinance. Based on the data from ten projects, this dissertation draws a both economical and qualified conclusion that micro-finance plays a positive impact on empowering poor people, increasing family property accumulation, improving the income of poor households and promoting innovation of poverty and financial policy, and the micro-finance institutes are far from being sustainable under the current low-interest-rate policy. With the change of external environmental policy and improvement of regulations and system of rural microfinance, the market-oriented interest rate will be charged to achieve sustainability in the long run.At present China's rural micro-finance are facing many difficult environment such as financial restriction policy on entrance to finance market and interest rate, imperfect market-oriented economy and legal status of rural micro-finance institutes. Single poverty objective , low-interest-rate and lack monitoring are also harmful for the sustainable development of rural microfinance. In order to solve these problems, the writer suggests rural credit cooperative participate in rural microfinance after innovation.