Research On The Mission Drift Problem Of Small Loan Company In China

In order to better solve the problem of "agriculture, rural areas and farmers" development and small micro enterprise financing difficult problem, the CBRC(China banking regulatory commission) and the PBOC(the people’s bank of China) decided in five provinces (Shanxi, Guizhou, Shaanxi, Sichuan, Inner Mongolia) to carry out the small loan company pilot job in2005. From December2005to the end of October2006, five pilot provinces (area) has become seven small loan company. Significant results were obtained in the pilot small loan company, on May4,2008, the CBRC and PBOC plans to further expand throughout the country small loan company pilot job. As of late2012, the national has established6080small loan company, loan balance of RMB592.138billion, employees70343people. Compared with2011, the small loan company total and the balance loans increased by42%and51%respectively.Small loan company should be in insisting on the principle of serving "agriculture, rural areas and farmers" in issuing loans, however, with the development of small loan company in China, more and more small loan company appeared loans deviation phenomenon, lending mostly to rich people, and less "agriculture, rural areas and farmers" loans or basic does not involve the use of "agriculture, rural areas and farmers" loans, which violates the principle of small loan company founded. Foreign related research literature and practice shows that microfinance institutions such as small loan company have appeared mission drift phenomena, will put more loans to rich people, fewer services to low-income groups, against the original intention of its poverty. Small loan company in China if there is a mission drift phenomenon, there are few domestic related research at present, the related theory is not mature. In view of this, this paper combined with microfinance mission drift theory, according to the relevant data of small loan company of the city in recent years, to analyze China’s small loan company mission drift problem. There are six sections in this article, the specific contents are as follows:The first chapter mainly introduced the paper selected topic background and significance The second chapter mainly introduces the definition of microcredit and small loan company, foreign theories about micro finance mission drift, literature review about mission drift, etc.; The mission drift under the definition of microfinance institutions lead to mission drift of small loan company; The third chapter mainly discusses the development process of small loan company in China and analyzes the current situation of the development, and economic development of the city in western and the city, analyzes the current situation of the development of small loan company; The fourth chapter is the empirical part of the small loan company mission drift, first to determine whether the city in western small loans company mission drift for the selection of indicators; Then analysis was performed according to the city,data of small loan company in recent years and measure indicators; Finally is the results analysis, summarized the results of the empirical. The fifth chapter is the empirical results based on the fourth chapter, puts forward the advice to prevent small loan company mission drift. The last chapter is to summarize the research achievements obtained of this article, summarizes some problems may exist in this article and future areas needs to be improved. This paper argues that small loan company of the city in western in the process of operation, has gradually the mission drift phenomenon, and puts forward some prevention of small loan company in China mission drift.But due to the limited time and capability, as well as the related to data limitations, will affect the quality and related analysis results of this paper. And abroad study of microfinance institutions mission drift can completely copy on the small loan company in China, and how to better measure mission drift of small loan company in China, the problem is worth further discussion. This paper puts forward the suggestions of how to prevent the small loan company mission drift, remains to be tested in practice and further research.