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Micro-credit Financial Innovation Analysis

Posted on:2004-05-25Degree:MasterType:Thesis
Country:ChinaCandidate:J P LiFull Text:PDF
GTID:2206360122471986Subject:Agricultural Economics and Management
Abstract/Summary:PDF Full Text Request
As the result of the innovation to traditional irregular credit modes and general credit modes of formal financial institutions, microfinance possesses innovative nature in financial system, financial product and organizational system, etc. For a long time, rural financial market has developed slowly in our country, the contradiction between financial supply and demand is very outstanding, the governmental subsidized loans program for the poor has not been operated effectively, therefore it can not improve the rural financial situation once and for all. So there is an imperative need to make rural financial innovation to meet the demand of the development of rural economy . There have been basically common views of the direction of rural financial innovation in present academic circles: to develop plural rural financial institutions, to build competitive rural financial market, to make rural finance fully play a role to support rural economic development, microfiance was rightly introduced in above background, its scientific operating mechanism enables it to be in line with the direction of rural financial innovation, to promote the pluralism of the participants in China's rural financial market and the change of the operating direction of rural financial institutions.As the achievement of rural financial innovation, microfinance abides by the rule Of financial innovation usually experiencing three stages. By and large, microfinance In our country has experienced such three phases as introduction made by non-governmental organizations (NGO), imitation done by Agricultural bank of China and governmental aid-the-poor department , popularization done by rural credit cooperative. The troubles lying in interest rate, the location of governmental functions, the status of non-governmental microfinance organizations, the managerial system of rural credit cooperative and personnel quality are key factors to restrict microf inane ial development and rural financial innovation in our country. In order to promote rural financial innovation in our country by taking the development of microfinance as a turning point, we must start with relaxing financial regulation, transforming governmental functions and deepening the innovation of rural financial system.
Keywords/Search Tags:microfinance, financial innovation, rural financial innovation
PDF Full Text Request
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