A Study On The Practice And Countermeasures Of The Rural Microfinance

We have made great progress in the development of economy and Politics in recent30years from the reform and opening up, and energy and motivation of the economic development are energetic. Along with the improvement of agricultural productivity, a large number of rural labor escaped from the agriculture production department. Many farmers choose the road of innovative undertaking, but they encountered a common obstacle——lack of development funds in the process of seeking new development ways, which became an important factor of restricting the development of rural economy and the increase of farmers’income. Therefore, it is imperative to develop the rural microfinance and solve the problem of lack of capital for the farmers.Since being introduced into China from1994, microfinance has solve part of rural people’s needs and played an important role in promoting the development of rural economy after10years of practicing. But there are still some problems at present, such as the microfinance positioning inappropriate, interest rates low and lack of corresponding legal supervision system. Therefore, it becomes particularly important of how to reform and creative the microfinance mode, achieve the sustainable development of its own self and serve the rural residents better.This paper first analyses and compares three fairly successful example of microfinance and summarize their commonality. Then exhaustively describes the development course and current status of microfinance, and finds out its problems and insufficiency on the basis of predecessors’experience.This paper uses the farmers in Ganyu Country of Jiangsu Province as the sampling frame, altogether has selected120samples and recycled102valid questionnaires which effective rate reached to85%. This paper exhaustively investigated the farmers" individual basic features, family information, household borrowing status and its purpose in2007,2008and2009. This paper adopts the method of descriptive statistic and analyses the implementation of farmers microfinance in Ganyu Country of Jiangsu Province, adopts the method of Second Logistic and analyses the factors affecting the accessibility of farmers microfinance. The analysis results show that the cultivated area and income a year have significant effect on the accessibility of farmers microfinance.Combining with the above analysis, this paper puts forward many policy suggestions:(1) In the innovation of operation institution, we shall establish and promote a special microfinance institution, and put all heart and soul to develop rural microfinance; Strengthen the management of microfinance, and the government, credit agency and farmers should form an organic unity; Insist the principle of "making progress while ensuring stability, priority of benefit, risk reduction and ocial concern".(2) In the innovation of risk management technique, we should strengthen risk control and perfect guarantee system, and establish the credit rating mechanism of microfinance; Improve credit conditions; Fix prices adapting to circumstances and flexibly operate in the aspect of microfinance rate.(3) In the innovation of business, we should expand loan object, increase loan amounts and extend loan term; Improve the service quality and service scope of microfinance institutions.(4) In the innovation of policy, we should perfect the state macro-control, provide policy support for microfinance; Clear the legal system of microfinance, and promote to perfect the financial system.