An Analysis Of The Sustainable Development Of The Micro-lending Companies In China

Finance plays a significant role in accelerating the development of the social economy in a country. In China, the rural financial structure is still underdeveloped and the competition among rural financial institutions is imperfect, leading to the inefficient financial services in rural areas. The pressure on the reform of rural financial system in China is gradually building up due to the deep changes in the rural economic society and the rapid growth of the small-and medium-sized enterprises in towns. Currently, the rural commercial banks cannot entirely adapt the huge changes and provide sufficient support to rural areas. Therefore the successive Number One files issued by the central government between2004and2007had put forward to encourage the innovation of rural financial system. It was pointed the government should give sufficient support to small-loan business as it was a proper way of financial innovation. Since2005, the pilot work of micro-lending companies had been implemented in China. The micro-lending companies kept expanding rapidly from then on, with the number of micro-lending firms and staff employed by micro-lending firms nationwide increasing to4,144and44,000respectively by the end of November2011. Meanwhile, the micro-lending companies issued369.4billion yuan in loans in total by the end of November2011. The pilot of micro-lending companies has tried to relieve the financing problems faced by small-and medium-sized enterprises and better meet the rural market demand. Additionally, it has guided the healthy development of private financing, gradually transferring the private capital to small-and medium-sized enterprises as well as the rural market. However, the small-loan business is still a new industry in China, and its development has no regular model to be followed. Currently, the development of micro-lending company still exits some problems and shortages. In order to better serve the agriculture, countryside and farmers as well as the small-and medium-sized enterprises, it is important to focus on the sustainable development of micro-lending company in China. Therefore the research will start from this point. And this paper will be divided into six chapters:Chapter one mainly focuses on the background information about this research and the current situation of related domestic and oversea research. The methodology of this paper and the main concept as well as the innovation of this paper is also reviewed in this chapter.In Chapter two, the related literature review on the sustainable development of micro-lending company is covered. Specifically, it explains the concept of micro-lending company and the importance of establishing micro-lending company. Additionally, the internal and external impacts on the sustainable development of micro-lending company are reviewed. The related literature review provides the theoretical basis for this paper.Chapter three analyzes the current situation of the development of micro-lending companies and problems faced by them. More specifically, the current situation of the development of micro-lending company is analyzed in the first part. On the basis, the problems exposed during the development of micro-lending company are analyzed.The forth chapter examines the case study of micro-lending company in Jiang Su province. Specifically, it analyzes the current situation of the development of micro-lending company in Jiang Su province and the problems exposed by them during the development. On the basis, the relevant suggestions are given.Chapter five gives eight aspects of suggestions relating to the sustainable development of micro-lending company in China, which combines the current situation of micro-lending company and problems exposed by them.In chapter six, the conclusion of this paper is presented. Meanwhile, the limitations of this paper and future prospects are also summarized in this chapter.