Running Performance And Business Diversification Of Rural Micro-Credit Companies In Jiangsu Province

Micro-credit company is China’s new rural financial institutions. By stationed in rural financial markets, it provides financial services for farmers, individual industrial and commercial households, small and medium enterprises, who cannot be covered by traditional financial institutions in the current market conditions, in order to help them improve their lives level and expand production to ease the financial problem. The generation of micro-credit company also has opened up a legal way to private capital, broke the monopoly of rural financial sector and brought in the competition.Evaluation of micro-credit company’s running performance needs to consider both the financial performance and social performance. Micro-credit company’s financial performance evaluation of sustainable development capacity, provision of financial services to the people who suffer from financial exclusion is social performance goal. Now evaluation of the performance focused on the field of financial performance and there isn’t unified evaluation of social performance standards. The research of dual goals remained in the theoretical discussions. Finance Office of Jiangsu Province, starting in2011, to encourage the province’s micro-credit companies to carry out diversified business to achieve financial sustainability and social objectives of the win-win. In practice, micro-credit company is how to run, in order to improve the performance? Whether is diversification an effective means of promoting the institutions’overall performance growth?In order to clarify the above problems, this paper based on the dual performance perspective, first combed performance issues related theory of small loan companies, on the basis of analysis of the status of the rural micro-credit company in Jiangsu Province, and then running diversification the performance impact of empirical analysis, draw conclusions and policy recommendations.This paper is divided into three parts. The first part is related to the theoretical analysis of the operational performance of the micro-credit companies. The second part by analyzing the operating status of the micro-credit companies, to sort out the reality in the achievement of the company’s financial performance and social performance of microcredit, through correlation analysis to study the interaction between dual performance in the short-term practice, as well as diversification to the performance. The empirical results show that the relationship between financial performance and social performance are not simply completely conflict, the relationship between the two from a multidimensional angle measure, and diversified business does play a co-promote the role of dual performance. The third part proposed to improve the policy, the introduction of the policy recommendations of the social performance appraisal system for a micro-credit company’s financial performance and social performance conflict.