Research On The Development Dilemma Of Micro-Credit Of Rural Credit Cooperatives

Micro-credit was founded in the1970s in Bangladesh, setting up a pilot and creating the Grameen Bank,it specifically provides unsecured credit funds for the poor people with the characteristic operation mechanism of micro-credit, so that the poor people got rid of the constant marginalizat-ion of financial services,and met the capital needs of their daily life,it played an important role in helping to break "vicious circle of poverty"odd circle,the model of the innovative poverty reduction was popularized very quickly.In1994,China also began to introduce micro-credit and established pilots,at the time duing to take the operation form of non-governmental organizations,Although the poverty reduction achieved some effects,the space of these organizations’development was greatly limited,they cannot sustainably provid-e the micro-credit service for the poor people,so in1999,as a formal financial institutio-n,Rural Credit Cooperatives started to a pilot of micro-credit and issuing micro-credit which was released comprehensively in December2001, since then, Rural Credit Cooperatives took on the heavy task of development of micro-credit projects.Micro-credit of Rural Credit Cooperatives not only could alleviate the problem of farmers loan、delay the breeding of civil usury.but also can improve their operating conditions, could help us to quickly break the existing"dual economy" development pattern.Although micro-credit of Rural Credit Cooperatives had gone through as many as10years, whether the cover-age of services or the quantity of credit households had been greatly inproved, but according to the research of relevant scholars and the author’s field research found that the development of micro-credit business of rural credit cooperatives is not very smooth, there are some dilemmas to disrupt its normal development, in order to explore whether, based on three aspects of the analysis:First,it analyzes the development dilemma of micro-credit business of rural credit cooperatives which bases on the perspective of the organization, through the contrast between rural credit cooperatives and rural banks、micro finance institutions,it finds that rural credit cooperatives exist the dilemma of the four aspects of property, assets, personnel and outlets;Then,it analyzes the development dilemma of micro-credit business of rural credit cooperatives which bases on the point of view of the costs and benefits, according to the contrast between information cost, supervision and management costs and expect default cost and benefits space of micro-credit business of rural credit cooperatives and rural banks,find that there are high cost and low income’s dilemma;finally,it analyzes the development dilemma of micro-credit business of rural credit cooperatives which bases on the view of national policy point, points out the government requires that rural credit cooperatives issue microcredit, the other hand, the lack of incentive or subsidy mechanism and other related policy support, making rural credit cooperatives operating small credit business in dilemma. This paper according to these difficulties and combining with the actual situation in our country puts forward some specific policy recommendations,to help rural credit cooperati-ves to get out of the difficult situation as soon as possible, realize the sustainable developme-nt of micro-credit services.to boost farmers’ income、industrialization of agriculture and the development of the rural economy,this could solve "three rural"problems effectively.