A Study On The Performance Of China’s Rural Microfinance

In current,performance problems is very outstanding in the process of our countryrural micro-finance development. This paper starting from the social and financialpoint of view to conduct a comprehensive study on rural micro-finance performanceissues. In the article section first describes the theoretical basis for performanceassessment evaluation of micro-finance. This study focused on two aspects: First, thesocial performance of micro-finance income effect analysis. The study found thatmicrofinance on one hand can relieve rural poor peasant loans difficult question, is apowerful tool in poverty alleviation; On the other hand, it improves farmers’ incomesituation. The empirical study concluded that the farmers get microfinance to differentparts, the farmers’ income improve effect is also different, among them, theagriculture of farming and planting forests get the outstanding performance, andrelative to the agriculture, taking micro-finance to non-agricultural have a better result.Second, the sustainable development of micro-finance financial performance analysis,The empirical research found that, credit institutions developing micro-financebusiness increased its profitability, and have no additional credit risk to the creditagencies. In view of the development of rural micro-finance produce a positive effectto farmers and institutions, the last part make out the relevant recommendations toimprove the performance of micro-finance, micro-finance should based on adhere tothe social performance, then increasing emphasis on credit institutions’ financialindicators of sustainable development. And strive to achieve win-win performancegoals, promote the development of microfinance in order to achieve the sustainabilitydevelopment of rural microfinance in the long-term.