The Evaluation Of Micro-credit Companies’ Operating Efficiency In Shaanxi Province

In recent years, with the advance of the concern in " three dimensional rural" issues andthe construction of new socialist countryside, the development of China’s vast rural areasbecomes rapid, but in the process, some problems don’t been solved effectively all along.Among them, the financial services in rural areas is the weak link, rural financial services isnot in place in recent years has become one of the major problems that restricts thedevelopment of rural economy. Gradual withdrawal of large state-owned commercial banks inrural areas, making the insufficient supply of rural finance, so that small and medium sizedrural financial institutions in rural areas have gradually become the main financial providers,therefore the development of small and medium sized rural financial institutions has becomean urgent need. As new financial institutions in rural areas, micro-credit companies aregradually developing in the rural environment of poor financial services, they have played acertain role in solving the problems that low network coverage of banking financialinstitutions in rural areas, lack of financial supply, inadequate competition and other issues.However, the running time of micro-credit companies is short, and running problems areobvious. Shaanxi Province is located in the underdeveloped western regions of China,developing in this environment, micro-credit companies are influenced by various factors andconstraints, and its development reflects the local rural financial support in a certain extent.Based on the above background, set the micro-credit companies in Shaanxi Province asresearch object, obtain the relevant data through field research, in order to analyze the statusand existing problems of micro-credit companies in Shaanxi Province. Then, combining theefficiency of agriculture and operational efficiency, using statistical analysis and DEA toevaluate the operating efficiency of micro-credit companies in Shaanxi Province from bothsurface and internal, and using Tobit model to do empirical analysis of the factors onoperating efficiency, making further analysis of the underlying causes of low efficiency fromaspects of the operation, agriculture supporting, and social environment, in order to explore itsdeep-seated problems. Finally, put forward some countermeasures that promoting theoperating efficiency of micro-credit companies in Shaanxi Province based on these.According to this logic, the specific contents of this paper are as follows: Chapter1: Introduction. This chapter mainly introduces the background, purpose,significance, domestic and foreign research situation, research ideas, methods and the possibleinnovation of this research.Chapter2: Development status and problems of micro-credit companies in Shaanxi.Mainly introduced institution’s profile and business development situation, based on thesecome to the questions that Shaanxi’ micro-credit companies are lack of financial professionalsand funding, agricultural loan is less and the loan-products are less.Chapter3: Evaluation and Empirical Analysis of operating efficiency on micro-creditcompanies in Shaanxi. Mainly use analysis of statistical indicators and DEA to evaluate theoperating efficiency of Shaanxi’s micro-credit companies. Firstly, preliminarily analyzing itby the scale of capital, loan size, loan structure and profitability characteristics, so that toprovide the basis for indicators selecting of DEA. Based on the further determine of Pearsoncorrelation test, and then use DEA to do the empirical analysis. The results show that theoverall operating efficiency of micro-credit companies is not high, and the efficiency ofmicro-credit companies in Northern Shaanxi is better than Guanzhong and Southern Shaanxi.The efficiency differences among each micro-credit companies are obvious, and scaleefficiency is the main that caused this, and the input-output is tend to redundant on input.Chapter4: Empirical Analysis of factors affecting operating efficiency on Shaanxi’smicro-credit companies. On the basis of empirical analysis on operating efficiency, use Tobitmodel to analyze the factors affecting operating efficiency on Shaanxi’s micro-creditcompanies. The results show that the loan size and asset size have a significant impact on theoverall efficiency of micro-credit companies. The impact of operating capacity on the operatingefficiency is greater than operating hours. The effect on supporting agriculture is not obvious to operatingefficiency, and the target deviation of development trends to expand. While the increased costs incurred bysupporting agriculture are not necessarily leading to lower operating efficiency of micro-credit companies,the continuation of its agriculture business is feasible.Chapter5: Countermeasures for improving operating efficiency on Shaanxi’smicro-credit companies. Based on the analysis of development status, problems, operatingefficiency and its influencing factors on Shaanxi’s micro-credit companies, the chapter putsforward countermeasures for improving the operating efficiency from the efficiency ofagriculture and operational efficiency.