Rural Credit Cooperatives Microfinance Farmers Financial Support

Microfinance has played an important role in rural finance field with its introducing into the plans of poverty reduction in China. It was described as a sort of amalgamation that the microfinance was taken by rural credit cooperative of China to farmers as a kind of business. It has already been proved that the microfinance is financial support met the needs of the development of rural economic and also positive exploration to solve the three rural-related problems.Rural credit cooperative of China has been a main force to offer farmers financial support directly, such as credit, since the state-owned banking commercialized reform. Recently, the microfinance business taken by rural credit cooperative of China has partially smoothed down the difficulty that the farmers can not get enough credit and it also imposes actively on increasing incomes of farmers.The conclusion of this paper is achieved by studying a typical area of Inner Mongolia and analyzing the data and information of this region. The article advances suggestions through the analysis of qualitative and quantitative. The effect of microfinance business taken by rural credit cooperative of China is measured by contrasting with the related ones provided by the Agricultural Bank of China and the Agriculture Development Bank of China.There are five parts in the structure of this paper. Instruction includes right principles and basic concepts about the whole article. Chapter One summarizes the theories and practice about the development of rural finance, both domestic and foreign. Chapter Two introduces the situation about which farmers obtain credit from both formal financial institutions and informal ones. Chapter Three analyses the instance of microfinance taken by rural credit cooperative of China in the typical area and emphasizes the influence both on rural credit cooperative of China and farmers. Aiming at dealing with consummating the microfinance, Chapter Four concludes the deficiency of this business and puts forward advice for government and rural credit cooperative of China.