Research On The Development Of Small Loan Companies In Liaocheng City Of Shandong Province

As a long-standing problem, financing difficulties existing in China’s rural financial system has seriously restricted the development and reform of rural economy in our country. Since the first batch of pilot in five provinces in 2005, micro-credit companies have mushroomed in China. Liaocheng carried out related work in the end of 2008. There have been eighteen micro-credit companies set up till the end of 2014, including two listed on the "new three board". Similar to the situation to other areas of the country, micro-credit companies in Liaocheng have showed an enormous potential for development. Micro-credit companies play a positive role in solving funding shortage of agriculture and small enterprises, and are conductive to promote the allocative efficiency of financial resources and improve the financial services environment of small and medium-sized enterprises and rural finance.Combining with the domestic and foreign related credits theories, this article tried to analyze the actual development situation of micro-credit companies in Liaocheng. Hoping to find out the internal and external factors that restricts the further development of micro-credit companies applying to all character types across the country, I selected ten typical companies in Liaocheng to do the field research. Focusing on the function location and operation patterns of micro-credit companies, this article studied some of the biggest and most interesting questions that credit economists are debating. Main conclusion:as a result of continuous financial reform and innovation in our country, micro-credit companies have a significant impact in guiding private capital circulating in the legal channels, and solving agriculture, rural areas and farmers, miniature enterprise financing difficulties. It is believed that the legal nature of micro-credit companies, the condition of changing into village banks, the heavy financial and taxation burden and the regulatory problems are the key issues blocking the development of micro-credit. At last, borrowed experience from the Ali small-leans and China Commercial Credit, this article put forward proposals to achieve sustainable development in view of the above problems. To deepen rural finance reform and achieve sustainable development in the new era, we should promote the transformation of micro-credit companies to pure financial institutions. Micro-credit companies in Liaocheng should widen financing channels to establish a more effective fund supplies mechanism. Micro-credit companies need to find a more flexible way to transform to or cooperate with village banks. Besides, micro-credit companies must always innovate the way through and perfect the structure of Co. Inner governance.