Hunan Rural Microfinance:Problems And Countermeasures

As a major agricultural province, China’s Hunan Province has nearly80percent of the population belongs to the rural population, and per capita income in China is in a relatively backward state, it means huge differences between the rich and poor in the province.Rural finance is a powerful way to guide and enhance the agricultural development in Hunan Province. In this case,researching Hunan Province Rural Microfinance Development status and problems, and giving the strategies of microfinance development for improving the status of agricultural development in Hunan Province, has a very important significance.After years of practice and development, Hunan Rural Microfinance has come out as the main rural credit cooperatives, rural credit portion of other commercial banks, rural banks, small loan companies and other auxiliary microfinance organization system, but it is still in a relatively preliminary stage, it still exist a large gap between supply and demand,and there are many problems existing in the agency’s own operations and management level.Since the1970s of the last century, Microfinance stepped into the formal development, then has been more mature mode in the international community, while our country introducing and exploring microfinance also has more than20years. This paper chooses a targeted selection of three more successful international models and four domestic successful practice cases, as GB model, institutionalism representatives BRI mode, and micro-credit insurance business in India mode and the Philippines mode represent the international welfarism, and the more successful the operation of commercial banks in Zhejiang Tyrone, Huidong RCCs, the Lishui rural credit cooperatives and the Huimin village Bank are selected in domestic. Some common success factors are summed up:government support, commercial operations, financial products suited to local conditions. There will be the basis for the issue of Rural Microfinance in Hunan Province.According to the Hunan Province Rural Microfinance Development status and problems, as well as the summed up the successful experience between international and domestic, this paper tries to present suggestions from four aspects in Hunan rural microfinance development:the government’s supports, improving policies and regulations, commendations for sustainable development in institutions and sustainable development in rural microfinance business, suggestions for learning and training MFI loans farmers.It is worth mentioning that, this paper presents the work of two long-term basis, and lay a solid foundation for long-term development of Hunan Rural Microfinance: Building farmer credit awareness campaigns and credit system.Recommendations and measures proposed in this paper is still relatively preliminary, pending review and exploration, continues to work out practical ways in practice operations.