The Postal Savings Bank Of China Microfinance Business Development Research

Microfinance originated in the1970s in Bangladesh was initially considered to be a kind of financial help to the poor people. In China, microfinance originated in the midterm of1990s, but developed slowly. In2005, December, China Postal Savings Bank began the pilot work of collateral microcredit in Fujian, Hubei and Shanxi and this was the mark of the beginning of microcredit business in China Postal Savings Bank.This paper first stated the fundamental concept, background and figure of microfinance. Then this paper introduced the fundamental theory of microfinance——sustainable development theory and its importance to the economy. At the same time, this paper stated the situation of microfinance at home and abroad. After that, this paper stated the history and current situation of microcredit business in China Postal Savings Bank and studied the operation mode of microcredit business in China Postal Savings Bank. Based on the operation mode, this paper analyzed the development of microcredit business in China Postal Savings Bank including analyzing the advantage, disadvantage, risk, inner and outer influence facts of this business in this bank. Finally, this paper provided some suggestion to improve the microcredit business in China Postal Savings Bank based on the analyzing.