Research On Sustainable Operation Of Micro-loan Company In China

The history of the development of small loan companies will have as much as6years since the pilot work in China by the end of2005.Micro-loan companies has developed rapidly in China since May2008When 《Guiding Opinions Of Micro-loan Company》 was issued.As a new Financial organization of the rural, Micro-loan companies fill the bank area that produced by Leaving rural of organization of regular financial, Breakdown Monopoly situation of Rural credit cooperatives,introduct of private capital and alleviate shortage of financing for "three-dimensional rural sissues"and small and medium enterprise.Micro-loan companies has played a significant role in improving financial services of rural areas and activing rural financial market.but it emerged some problems from itself and outside, such as lack of funds and talent,regulatory unknown, and so on.How to solve these problems and make small loans the sustainable operation,which isthe problem discussed in this article.According to the theory of small credit and Micro-loan companies,with a combined method of case investigation and qualitative and quantitative analysis,the article analyzes the operation condition of Micro-loan companies in hebei province,then deeply analyze that micro-loan companies are facing the difficulties and reasons in operation from system, its own development, product innovation and risk control four Angle. Later, the paper sums up operation experiences of GB and BRI-UD by using the method of induce deduction.On this basis, combined with small loan company’s actual situation,it analysis the the sustainable strategy. These strategies includes four aspects:The government must be clear about the status of Micro-loan companies,strengthen policy support and carry on the effective supervision; Microfinance companies need to be added to the follow-up funding sources, perfect the internal governance structure, improvethe quality of employees though the training; In regard to products, it must strengthen inovation of the financial and promote the flexible assure means:Aspect of the cntrol in risk,it need strengthen management in credit and cultivate the good financial environment, and so on.