A Study On Sustainable Development Of China’s Rural Microfinance

Accelerating the construction of rural financial system, bettering rural financial market are the important method to solve China’s "Three Rural Issues" problem. Rural microfinance, as the efficient combination of traditional financial mode and helping the poor mechanism, with the twenty years of practicing in our rural market, has been proved that it’s the key part of our new rural financial system, playing an important role in supplying rural financial credit, promoting economic development of poor rural area, and improving rural financial services. Despite the achievements and experience of China’s rural microfinance in the last several years, its sustainable developing road is still tough under the constraints of policy environment, institution management and financial system. Research on how to make the vast poor farmers and underdevelopment rural areas to share the bonus of China’s economic and financial reform, promote the sustainable development of China’s rural microfinance, is of great significance in China’s rural economic and social development, comprehensively deepening the reformation.This paper focuses on the sustainable development of China’s rural microfinance, under the theory basic of microfinance sustainable development, introducing the relevant concepts of microfinance, operation principles, and the conditions of sustainable development, analyzing the development process of China’s rural microfinance, the present situations and the existing problems of banking and non-banking institutions during the sustainable development, such as the imbalance between supply and demand, efficiency of money supply and the unsound rural financial system. Under the analysis of the rural microfinance’s present status, this paper points out the influence factors which constraint the sustainable development of rural microfinance, including policy, management and market factors. Finally, aiming at the obstacle factors of rural microfinance’s sustainable development, this paper makes some reasonable and feasible suggestions in promoting sustainable development of China’s rural microfinance from three aspects.