Research On The Issues Of Rural Credit Cooperatives Micro-credit

Micro-credit is a credit model which was aimed at to help the poor by the Grameen Bank inthe1976. In1994, china has introduced the Micro-credit business and conducted a pilot. Aftertwo decades of development, Micro-credit has been proved to be an effective way to solve theproblem of poverty. Micro-credit also plays an important role in improving rural poverty andpromoting economic development. In1999, Jiaxing Rural Credit Cooperatives started a pilot ofMicro-credit in rural areas. As a formal financial institution, Micro-credit of Rural CreditCooperatives occupies an important position in the rural financial market of Jiaxing. JiaxingRural Credit Cooperatives Micro-credit have achieved certain social and economic benefits, andhighly recognized by the farmers, but there are still some problems to be solved, such as weakcompetitiveness, low interest rates, loan process cumbersome and other issues. These issuescaused the scale of Micro-credit has a downward trend in recent years. Therefore, to researchthe problems and causes of Jiaxing Rural Credit Cooperatives has important significance.This paper takes Jiaxing Rural Credit Cooperatives Micro-credit as the research case. Firstly,the paper summed up the experience in the development of Micro-credit in China and abroad,and from the perspective of Credit Cooperatives and farmers, the paper introduced the currentsituation of Jiaxing Rural Credit Cooperatives Micro-credit; Secondly, based on theinvestigation of Jiaxing Rural Credit Cooperatives, the paper sort out four major existingproblems in present; finally, according to these problems, combined with the successfulexperience, the paper put forward countermeasures of its sustainable development. Thesuggestions: do brand building and enhance market competitiveness; take advantage ofinsurance to cope with risks; payments to farmers through fiscal transfers; set a reasonableinterest rates; strengthen internal management; improve staff quality; optimization ruralfinancial ecological environment. To effective implement these recommendations will greatlypromote the sustainable development of Rural Credit Cooperatives.