The Research On The Development Of Rural Microcredit Under The Economic Transformation

Microfinance has a history of40years of development, as a kind of effectivemeans for poverty alleviation, it has become an important part of the rural financialdevelopment in the the developing countries and regions. A lot of research andanalysis show that the rural poor people need microfinance to increase their income,improve the level of life and improve their ability to resist risk in times of crisis. Asto achieve goals to reduce poverty, narrow the gap between rich and the poor, thegovernment should not only establish the stable financial policies for supportingagriculture and the popularization of public finance, but also build more diversifiedand market-oriented microfinance organization, fundamentally solving the problemof farmers’ financing difficulties.Microfinance has begun in the1980s in China, when is mainly combined withpoverty alleviation, by non-governmental organizations to provide small loans topoor people. With the three rural problems coming out, microfinance has graduallybecome the motive force of the rural financial development as a kind of effectivemeans of poverty alleviation. Nowadays with the constant deepening of theeconomic transformation in our country, the reformation of the financial system haspushed at the same time. The restrictions on financial market gradually open and theprocess of marketization of interest rate also gradually accelerates. Microfinance hasushered opportunities in the process, also faces great challenge at the same time. Justas funding sources, risk control, loan interest rates, governance structure andregulatory problems has restricted the sustainable development of microfinance.Thus, it’s practically significant to research out the corresponding countermeasures and the suggestions for these exposed problems.This paper mainly analyzes the problems of China’s rural microfinance underthe economic transition, combined with the success examples of microfinancedevelopment both at home and abroad, and comes up with more practical and morefeasibility suggestions. The full text is divided into five parts:Chapter Ⅰ, mainly discusses the significance and the background for selectingthe topic of this paper, the current situation at home and abroad, research ideas andthe innovation of this article. In the part of domestic and foreign microfinance, itanalyzes the domestic and foreign research results of microfinance from threeaspects, the definition of microfinance, function and meaning, and main problems.Chapter Ⅱ, firstly makes an overview of the basic concepts and characteristicsof microfinance. Then making the Grameen Bank (GB) and the PhilippinesAgriculture Rural Development Center (MRI-CARD) for instance, analyzs theirdevelopment situations and the lessons from the successful experiences.Chapter Ⅲ is the analysis of current situation of the development ofmicrofinance in our country. This part firstly introduces the economic background ofthe development of rural microfinance in China, then points out that according to thedevelopment of China’s economic transformation, rural microfinance hasexperienced three stages in total, namely the NGO "early test" project, povertyalleviation policy of microfinance and the commercialization of microfinance atpresent. In the three stages, microfinanceorganization patterns has experienced innovation and reformation. This chapterdescribes the development statu of microfinance institutions through a large amountof data and examples, and analyzes two examples at home to draw lessons fromthem.Chapter Ⅳ mainly analyzes the existing problems from four points such asmicrofinance organization and management system, business development, risk control and regulation of the rural microfinance in China at present.Chapter Ⅴ focuses on analysis of existing problems in the previous chapter, theauthor puts forward five countermeasures and suggestions, namely, explore newmodels of microcredit, establish flexible interest rate system, improve the creditenvironment and the establishment of the relevant regulations.