Analysis On Factors Of Microfinance Credit Risk Research In The View Of Rural Household

Since 1970s, Bangladesh started to boost the microfinance in order to help the poor. As a kind of informal financial policy, microfinance had largely increased peasant income and brought prosperity to Bangladesh. Such successful case, of course, made a good example for the other world and had being imposed in developing countries.For a long interval, the countryside of China was less developed than city and had hold back the development of China's economy. However agriculture development and issues, to some extent, can not be solved without finance support. As time went by, commercial bank are gradually leaving from countryside as produced a lot of problem for the poor area. Since then, difficulty in getting loan is the most serious issues in China's countryside. Thus, in order to change this situation, our government began to introduce microfinance and now the number of microfinance institution is about 300.Jiangsu began using microfinance since 2001 and now it had become the main access to loan. As of December of 2009, all countryside has set up microfinance bank with total loan of 1160 million RMB. The policy of microfinance in Jiangsu had significantly improved the residents'life and boost the development of these area. However, microfinance was still facing credit risk because such loan hardly required the mortgage. The feature of microfinance lead to comparatively high credit risk finally.This paper manly discuss the factors of credit risk in the perspective of personal, family and loan characteristic in the case of Sihong Rural Cooperated Bank. The result shows that factors including part-time job, household income and the use of loan significantly affected the credit risk of Sihong bank. At last, we propose positive and practical suggestion in order to improve the development of Sihong Bank.