Research On The Operating Efficiency And Influencing Factors Of Micro-Credit Enterprises

Rural finance is the core of modern rural economy, but insufficient financial products, limited financial access, unqualified quality of financial service still remain the top-grade obstacles in rural financial demands which will certainly restrict the further development of agriculture and the transformation in rural areas and in the future. Therefore the government pained more attention to "agriculture, rural areas and farmers" issues and made special polices aiming at small micro enterprise credit. One important measure is promoting private capital entering financial sector, encouraging private capital establish private banks and financial institutions, etc. In practice, establishing micro-credit institutions is their main choice. With the guidance and support of the government’s policies, micro-credit enterprises developed rapidly national-wide. But can they operate efficiently, what factors influence their efficiency, how to make micro-credit institutions better to realize win-win situation are subjects worth studying.Taking 227 micro-credit institutions in Jiangsu province as research sample, this paper try to use DEA-tobit Model to evaluate micro-credit institutions’operating efficiency and the main factors that influenced their efficiency. By analysis the outcomes of the model, we can give some advices on how to further improve micro-credit institutions’efficiency thus built a more complete rural financial system. Previous study of microfinance institutions operating efficiency is more focused on using DEA model, and for the further empirical analysis of the factors affecting the operating efficiency of less and the method is simple. In this paper, reference to the international commonly used "two stage method", apply to join the overdue loans as "unexpected" output DEA model, try to more accurately measure the small loan companies operating efficiency, and combined with the characteristics of the small loan companies, using Tobit model to measure the results, the influence factors of the efficiency of small loan companies empirically.The main structure and content of this article are as follows:The first chapter mainly talks about the background of the topic, issues and research significance; research objectives, content of research ideas and technology routes. The second chapter reviewed the main theoretical basis relevant to the study and research in recent years on micro-credit institutions and rural finance. The third part mainly introduces the private capital participate in financial market situation and operation status quo of micro-credit institutions, especially the rural micro-credit institutions in Jiangsu province as the research object. This part described Jiangsu micro-credit institutions’capital structure, operational efficiency, loan structure and compared their operation performances. The fourth part is the rural microfinance company operation performance and influence factors of research. First use DEA with "undesirable" output model to measure the operating efficiency of micro-credit institutions, and then using Tobit model to find out the main factors that influence the company’s operating efficiency. The results show that the micro-credit institutions’capital scale, proportion of external financing, operating self-sufficiency rate and average size of the loan has a significant positive influence on its operating efficiency. Loan rate has a positive influence on operating efficiency and the current loan interest rate may not strengthen the risk of moral hazard and adverse selection of threshold value. The average loan amount has economies of scale; Agricultural loans of small loan companies significant negative impact on the operating efficiency of financial last goal and support agriculture goal there is a conflict. The fifth part is the conclusion of the paper and Suggestions. According to the above the existing theoretical analysis and empirical analysis results, for micro-credit institutions to raise their operation efficiency and better serve the rural financial market put forward the corresponding policy recommendations:Borden micro-credit institutions’financing proportion, diversify their sources of funding; Set the basis of micro-credit institutions’lending requirements in accordance with local financial development, to give preferential policies to conform to the provisions of the micro-credit institutions, and improve the micro-credit institutions preferential tax policies; Accelerate the process of interest rate liberalization in rural areas.