Research On Microfinance Evaluation Technology And Risk Control

The modern theory of the microfinance origins in Bangladesh, and the International Microcredit has made considerable progress after 40 years of development. The development model of microfinance has many differences between the developing countries and the developed countries because of their different national conditions. China has a rapid economic development in micro and individual enterprises, which has made a great contribution to the national economy. However,our microfinance developed late so that there are still a lot of immature places in micro enterprises and individual economic. The main factor is that traditional financial institutions can not fully grasp the microfinance assessment techniques and risk control measures. Internationally credit score and credit IPC technology are two relatively mature credit assessment techniques which have been widely copied in their respective fields. Microfinance assessment techniques plays an important role in controlling risk and supporting sustainable development in the commercialization of microfinance institutions. Microfinance has its own characteristics different from traditional credit, so it also has different credit assessment techniques with traditional institutions. Excellent microfinance critical assessment techniques can effectively control the risks as well as support financial institutions invest more money to micro enterprises and individual industrial and commercial households.This article first introduces the microfinance model of development, through the study of international successful microfinance development model, leads in microfinance risk control should focus on a number of factors, perfect assessment techniques palys the most important role to control microfinance risk. Then point out the specials of microfinance assessment combined with credit assessment theory, we use the case study describes two methods that are widely used in the world of microfinance assessment techniques to summarize the applicable conditions and analyses their respective advantages. Then this paper design a new type ofmicrofinance assessment techniques through combine the above research,applying it to real cases and evaluate its advantages and disadvantages. Finally we draw conclusions and recommendations of this article.Conclusions include: successful assessment of microfinance technology and risk control measures are the key to achieving the goal of microfinance. On the one hand it can reduce the risk of loans and achieve sustainable microfinance institutions. On the other hand it can cover as many target market customer base and avoid some qualified borrowers to be excluded.Suggestions include that speeding up the construction of social credit system,focusing on the accumulation of customer data, improve staff training mechanism,implementing self-help groups, the order of lending, amortization and dynamic incentive system,learn advanced experience from different assessment techniques, exploring new and more effective assessment techniques...