Thinking La’an Microfinance Development Of Rural Credit Cooperatives

In the rural area of our country, poverty group needs financial support from the financial institutions. However, some financial institutions cannot meet the need of these farmers for financial services for reasons of credit cost, market position, and so on. Microfinance is an innovative products specializes in serving the low-income farmers and poor peasantry. For this characteristic that makes microfinance inevitable be associated with poverty. Microfinance has become more and more popular and attract lots of attention when double stimulated by the request of the policy and the demand of the market.The distribution of poor peasantry in the rural area of Lu’an is concentrated and broad. Because of this kind of poverty, these famers do not have the ability to guarantee, and unable to obtain loans from financial institutions. With the gradually retreat of the state-owned commercial Banks from the place below the county economy, RCCs in Lu’an has become the formal financial institutions with the most branches as well as the main financial institutions financial markets. Microfinance of RCCs in Lu’an not only solved farmers’loans problem, but also reduced the burden of the government. So the mircrofinance of rural credit cooperatives was welcomed by the local governments in Lu’an. In view of this kind of current situation, this paper investigate on RCCs in Lu’an from the following three aspects:First, the status of RCCs’ microfinance in the rural financial market of Lu’an; Second, the operating mode of RCCs’microfinance in Lu’an; Third, the efficiency analysis of RCCs’microfinance in Lu’an. Based on the analysis of the problem arised during the development of RCCs’microfinance from the above three aspects, the following reasons can be concluded:first, the exsistance of too much problem of RCCs left over from history; Second, RCCs’ cognitive deviation of microfinance; Third, generally poor management consciousness and ability of the farmers; Fourth, the low quality of customer management. Suggestions to benifit the development of RCCs’microfinance can be received according to those problems:First, standardize management of peasant households’microfinace; Second, strengthen the cooperation between RCCs and guarantee companies; Third, improve the construction of rural credit system; Fourth, change ideas and improve the quality of loan officers. It is expected that these suggestions can improve market competitiveness of RCCs.