A Study On The Operation And Development Of F Microcredit Company

In2005, People’s Bank of China launched the pilot project of sustainable commercial microcredit company (MCCs) in5provinces, including Shaanxi, Shanxi, Sichuan, Guizhou and Inner Mongolia. Since then, MCCs in China have developed by leaps and bounds. By the end of2012, the number of small loan companies in China has reached6080, loan balance amount of RMB592.138billion, and has70343employees. MCCs provide money for many farmers, self-employed people and small medium enterprises.While the industry booming, MCCs also exist many problems. Over emphasize on profit leads to the lack of standardization in the operation of MCCs. For example, MCCs usually charge processing fee and management fee, which cause the effective annual interest rate of MCCs exceeded4x of PBOC rate. At the same time, average loan amount is large than expected, deviated the principle of "small and scattered". Besides, due to the current policy restriction on source of funds and so on, there’re many obstacles and uncertainties in the development of MCCs.Under this situation, what are the current operating conditions of China’s MCCs, and how to develop in the future? To solve these problems, this paper chooses a MCC named F as an example to analysis the management status quo of MCCs in China, then summed up the characteristics and the existing problems of MCCs, and put forward solutions and suggestions at last. F Company headquarters in Chengdu and its business scope involved in Sichuan, Chongqing and Hubei. F as a relatively big microcredit company has the general characteristics of MCCs. It can reflect current problems faced by MCCs. On the other hand, the parent company of F has rich experience in microfinance operations, making F have certain advanced and innovative in the operation, which is worth learning by the numerous MCCs in China. Taken the form of case study, this paper collected large amounts of data, using a variety of analysis methods, organically combined theory with practice, striving for give some suggestions for the development of commercial MCCs in our country.Chapter one introduces the background and significance of writing, introduces the development of commercial MCCs in China, and summarizes the predecessors’ research. Chapter two introduces the basic situation of F Company, including product characteristics, loan approval procedures. Chapter three analyzes the macroeconomic situation and the development of MCCs in Sichuan, Chongqing and Hubei; points out that these places have tremendous market potential, which is suitable for F’s development. Chapter four analyzed and summarized F’s operation situation, using the method of contrastive analysis. On the basis, summarize the operating characteristics of F, and carry out the SWOT analysis of F. Chapter five puts forward possible solutions and suggestions according to above analysis for F.