Microfinance Company Development And Strategy Research

Microfinance as an emerging financial way, it changed mainly rely on the state’s financial situation or external funding support for the economy provided financial support for the poor, such as farmers, small and medium enterprises and other groups to help them solve the problem of shortage of funds. Microfinance in China’s economic development plays an important role in boosting the army; gradually get the attention of our country, China’s economic reform and development is currently actively advocated and implemented.Despite a late start, but the development of microfinance industry is rapid. As of late December2011, China’s small loan company for the development to4282, loans391.5billion Yuan. Also the annual total193.5billion Yuan of new loans, and achieved good economic and social benefits. Such data is sufficient to show that the country’s small loan company has exceeded limit construction in the early years, is in full swing.This paper first describes the theory of microfinance:theory of financial deepening and financial repression theory, theory of financial constraints, asymmetric information theory, transaction cost theory, theory of imperfect competition, credit rationing theory, rural financial market theory and the theory is sustainable development. Through the analysis of the development process and the status quo, summed up the issue of microfinance in the development process encountered. These issues are regulated levels:1.The legal status is not clear, external supervision;2.Small loan companies service object positioning is not clear. Operational levels:1. Facing the finance problems;2. Low quality of employees, lack of professional training;3. Their risk control capability is not strong, management deficiencies;4. The risk of loans to customers’subjective aspects exists. Macro environment levels:a personal credit system is not perfect;2. Safeguards need to be improved.For the above problems, this paper puts forward some correspondent countermeasures. First, strengthen external supervision. Accelerate the improvement of legislation on small loan companies. Secondly, solve the problems during operations. Broaden the financing channels microfinance institutions, the establishment of training mechanisms to accelerate the development of human resource, build customer credit rating system, improve the system of microcredit clients HSP, to take effective incentive mechanism.Then, small loan companies to improve the survival and development of the macro-environment. Rely on the government to establish a personal credit system, moderate liberalization policies and support to accelerate the establishment of small loan companies Industry Association, established safeguards.