Postal Savings Bank Microcredit Business Development Strategy Research

The Postal Savings Bank of China introduced a small loans for farmers andmerchants in2007, with its broad branches all over the urban and rural area and theadvantages of network, a wide range of funding sources, and good brand reputation, postalsaving bank’s small loans developed rapidly, showing its superiority and rationality ofproviding microfinance. However, in recent years, there have been frequent rate of laterepay occurs and The business is difficult to develop.The purpose of this paper is to through the discussion of successful experience offoreign countries’ microcredit and the shortage of postal saving bank, as well as to theanalysis of postal savings bank small loans’ advantages, disadvantages, opportunities andchallenges, together with the present situation of post saving bank small loans’ risks,systematically analysis the risk development problem of the postal saving bank’smicrofinance, summarizes the experience that Postal Saving Bank microcredit can learnfrom the developed countries.Because of short operation time, lack of management experience, Postal Saving Bankhas abnormal risks that other banks general lack. Nothing but only real good preparation inthe face of these risks, constantly optimize its own risk management and complete thesystem of the risk, can provide a solid foundation and protection for the sustainabledevelopment of microcredit.Finally, we conduct a study on the sustainable development strategy of China’s postalsavings microcredit, analyzed macro and micro factors that restrict the sustainabledevelopment of microfinance in Postal Savings Bank of China. Combined with the riskmanagement above, propose Postal Savings Bank’s sustainable development strategy onmacro and micro aspect, in order to ensure the specification and sustainable developmentof Postal Saving Bank microcredit business.