Social Performance Of Micro-credit In Henan Province

Micro-credit is based on profit and plays the function of the financialintermediaries. The loans depend on external aid firstly, then theinstitutions can realize sustainable development through theself-financing. In the early1970s, Bangladesh, as one of Asia’s most poorcountries, launched a new micro-credit system and method. After that, aseries of bank representative microfinance mode, such as the SunshineBank of Bolivia, People’s Bank of Indonesia and the rural banks in LatinAmerica. Learned from the Bangladesh model, China established the firstnational testing organization in October1993---Yi county economiccooperation in Hebei Province, a bold exploration and beneficial attempt.So far, China has achieved considerable progress and significant povertyeffects. But at the same time we still face many theoretical and practicalproblems and need further exploration and practice.This paper, which makes the theory of rural micro-credit as afoundation and rural credit union as the research object, apply thetheoretical analysis, measurement analysis and case analysis. It is mainlydivided into four respects: firstly, the rural financial development and theformal financial institutions in micro-credit business. From rural financialdevelopment of theory and practice, it points that the micro-credit,provides credit services to low-income groups effectively, has come tonormalization. The formal financial institutions promote micro-creditbusiness, That is important to financial development and improvement inrural areas of China. Secondly: The operation mechanism analysis inmicro-finance market. Using the market analysis and quantitative analysismethod, we make researches from the supply and demand. Making thefinancial needs of the analysis among farmers, combined with theresearch of the actual data, it uses the Binary Logistic model to analyzethe influence of farmer participation in microfinance business. It makesthe rural credit union as a representative financial organization in rural financial market of Henan Province to understand the supply conditionsin rural financial market and analyze its superiority. Thirdly: The socialperformance evaluation in micro-credit business of rural credit union.Through the establishment of a complete social performance evaluationsystem in micro-credit business, it makes Xingyang as the research objectto evaluate from the target and behavior of the rural credit union, thesatisfaction on the micro-finance service, the realization of social goaland financial sustainability. Finally: the conclusion and related policyanalysis. Based on the analysis of the results, it discusses the problems inmicro-credit business of rural credit union and provides advices to othermicro-finance institutions in rural financial market to perfect ourcountry’s microfinance mechanism and promote the sustainabledevelopment of micro-credit business.