The Research On The Sustainable Development Of Rural Microfinance Through The Perspective Of Inclusive Financial System

Microfinance is a product of rural financial innovation, but also is an important annulus to construct inclusive financial system. Since introduced to our country, microfinance has promoted great influence on the development of China’s rural economy. However, the sustainable development of microfinance has been a major issue. It is difficult to achieve significant results in two aspects which involve serving rural low-income groups and maintaining commercially sustainable financial goal. Therefore, this paper tries to study on rural microfinance to explore the feasible path of its sustainable development.Based on the review of literature and theory, this paper analyses development status of China’s rural microfinance from the perspective of inclusive financial system. Inadequate supply of traditional formal financial institutions and higher risk of non-formal financial mode makes the shortage of rural financial supply. It has become an important reason for developing the microfinance. With the development of the society, each type of microfinance presents different characteristics and encounteres various difficulties. With the help of economic analysis tool, we can find the deeply level reason implicating the problem of China’s rural microfinance. There are some problems such as the control of interest rate, high agriculture risk and asymmetric information. These may lead to improper allocation of resources. At the same time, microfinance is also facing several problems. For example, rural market economic system is not perfect, some types of microfinance subject face discrimination, the mechanism of rural risk mortgage compensation is imperfect.Basing on the previous theoretical analysis, this paper also makes an empirical analysis for the development of microfinance in rural area of our country by using the statistical data from China Association of Microfinance. Descriptive statistical analysis predict that the organizations of rural microfinance in China are not performing just as we wish in aspects of the customer service index (the social goal of microfinance) and operational performance indicators (the financial goal of micro finance). Through Data envelopment analysis, we can also get new discoveries. On one hand, the technical efficiency of microfinance is low. On the other hand, microfinance’s social and financial goals are not necessarily mutually mutex. However, achieving these two objectives at the same time is very difficult.Finally, with the help of connotation of inclusive financial system, this paper summarizes the conclusions briefly in the four aspects. This paper supplies these suggestions:changing the traditional concept of microfinance, encouraging diversified development of microfinance, creating open and fair market environment, improving supervision and assistance system of microfinance.