The Research On The Development Of The Rural Microfinance In China And The Countermeasures

Over the years, poverty in rural China has been the most important issue to beresolved. This is related to the survival of millions of farmers. At0:00on November1st,2010, for the sixth national census, the rural population occupied50.32%of thetotal1,339,700,000population in China. It is said that the rural population stilloccupy the most of the total population. Although the urban population has improved,the rural farmers are still the main component of China’s population. To solve thesepeople’s survival is the primary problem. General characteristics of the farmers arepoor, only when the farmers are rich, the Chinese people’s living standards willenhance the overall. From the "poverty alleviation of country87Plan" to now, Chinahas made in poverty alleviation great achievements, most recently in April2011, theCPC Central Committee Political Bureau Standing Committee, held a meeting onpoverty alleviation and development work, considered and adopted the "China RuralPoverty Reduction development Program (2011-2020),"poverty guidelines for thenext way. The micro-credit is in this context came into being widely adopted byfinancial institutions.The most early produced in Bangladesh micro-credit, made by the famouseconomist Yunus, Grameen Bank in Bangladesh, and conducted the first experimentalwork. With the subsequent success of the Grameen Bank in Bangladesh, Bolivia andIndonesia sun bank People’s Bank followed suit and began to explore their ownconditions for running micro-credit mechanisms, and thus, micro-credit worldwidehas been widely promoted. To the present, not only the developing countries, but alsoit some developed countries have taken measures to micro-credit to help their poor.China’s formal introduction of micro-credit was in1994, by the Chinese Academy ofSciences Professor Du Xiaoshan successfully tested in Yixian, Hebei, China markedthe micro-credit financial institutions formally adopted. Subsequently, themicro-credit in China to promote the open, since the development process can bedivided into four stages, but it also proved that microcredit poverty alleviationmeasures, in line with China’s national conditions, with a strong vitality andsustainability. This paper draws on the world’s success stories of microcredit on the run, themain analysis of the Grameen Bank and Bank of Bolivia sun classic mode ofoperation and development. It has discusses the theoretical background related tomicrofinance, as well as concepts and characteristics, to demonstrate a micro-creditfor China’s national conditions. It can help farmers become rich features. In exploringthe development of micro-credit in China, with emphasis on microfinance inaddressing poverty is the great contribution made by, and as people of greatimportance to strengthening micro-credit, Government and some financial institutionsto provide micro-credit increasingly favorable operating environment, it needs fundsfor the poor and lower middle class people better service.Then, for the special conditions, according to a certain frame analysis of China’smicrofinance operation in the current problems, these problems demand from thefarmers, the main demand was not strong enough due to the borrower, in addition tohigher interest rates, out of the market and commercialization needs, do not meet thegoal of sustainable development, and the procedures to obtain micro-credit is alsovery complicated, other costs are high, Many farmers want to make loans to financialinstitutions not to enter the formal application; from the provision of micro-creditsupply side, the formal financial institutions and there is asymmetric informationbetween farmers and the lack of funding sources, which have led farmers to be moreinclined to rate very simple procedure, but the non-formal financial institutions; andthe lack of system improve laws and regulations to provide protection.Although the development of microcredit in China is difficult, its advantages cannot be ignored. Micro-credit for the existing range of issues, this paper presents thecorresponding countermeasures: strengthening women’s role in microfinance. Thetraditional concept, in the household, men who are often the demand for capital, and itmade banks neglect of women’s this important role in expanding domestic demand. Itneeds to re-straighten the position of women. And the practice of the Grameen Bankin Bangladesh, women need to increase the success cannot be ignored. They buildgood service management system; many farmers are reflected in the lending process.As the financial services personnel, poor service, leaving users of banks and otherfinancial institutions have tired of the psychological. Standard micro-credit loanprocess is smooth so that the premise; enhance the flexibility of micro-credit, fordifferent measures and for different customer groups, vary, which would greatlyincrease the lending group, to develop special services for special populations. Through a lot of discussion and evidence, this conclusion is that micro-credit fitfor China’s development, and it is an effective poverty reduction. Sustainabledevelopment is a prerequisite for the existence of micro-credit institutions.Microfinance in China long-term development needs of the market, commercialoperations, in line with the market mechanism and to adapt to market demand. It is themicrofinance institution’s future development prospects.