Rural Credit Cooperatives Carried Out Innovative Research On Microfinance Business

Microfinance is a kind of credit model which designed by the Grameen Bank in the 1970 s to serve the poor, then extended to Asia, Africa and Latin America.Microfinance was introduced into China in 1994 as experimental unit, In December2001, the rural credit cooperatives began issuing microcredit, meaning Chinese formal financial institutions has entered the field of microfinance.At present, the rural credit cooperatives play the dominate role in microfinance,it can ease the difficulty when farmers search for loans, promote their own development,and curbing the spread of civil usury. But considering prudence and risk control, rural credit remains dilemma that farmers effective funding needs are not met when a large number of rural credit cooperatives funds do not get reasonable used.Therefore, how to solve this dilemma, to meet the credit needs of farmers effectively and promote the healthy development of rural credit cooperatives is a problem, which we discussed in this paper.This paper combine theoretical analysis and empirical research, explain how and when can we achieve the "sustainable profitability" and "financial security" of the rural credit cooperatives, ultimately, we find effective method of rural credit cooperatives microfinance and business policy tilt needed. Therefore, the second part of the paper the authors use theoretical and demonstration to prove microfinance’s“sustainable profitability”, the third and fourth parts of the paper comparative study of domestic and international experience, trying to find methods to guaranteed “the safety of the funds”. In the fifth part, the paper introduced a successful case of LUYI rural credit cooperatives, the case studies and data support us to find a suitable development model for rural credit cooperatives microfinance business environment.