Research For The Sustainable Development Of Rural Micro-finance

China’s research on micro-finance is derived from Grameen Bank in Bangladesh which was established by Muhammad Yunu in 1972 and of which the purpose is to solve poverty of rural places in Bangladesh.Grameen Bank has gained great success so that Muhammad Yunu won the Nobel Prize in economics.Originally,micro-finance in China is mainly farmers’micro-credit loans and group lending which are offered by Rural Credit Cooperatives guided by the People’s Bank of China.The People’s Bank of China afterwards allowed to establish three kinds of new type of financial institutions including "rural bank","lending company"and "rural capital supporting institution" in rural areas.The above innovation measures prompted sustainable and rapid development of the rural micro-finance.This paper expounds different meanings of micro-finance as a business varieties and credit institutions,analyzes the main characteristic of micro-finance in China and describes the theoretical basis of micro-finance from transaction costs theory,financial repression and financial deepening theory,sustainable development theory,imperfect competition theory and theory of poverty,etc.Through analyzing positive effect and existing problems of micro-finance in rural areas,this paper puts forward the restricted factors of micro-finance development such as the external causes including the market economy system and policy supporting environment,the internal factors including inefficiency and capital sources,non-financial credit evaluation mechanism focusing on moral hazard and social capital,incomplete risk pricing mechanism and dynamic incentive mechanism,etc.This paper focuses on the development course of micro-finance,the present situation of the public welfare micro-finance,the types of institutions and the supply characteristics of the micro-finance business in Tai’an.This paper investigates financing demand situation of some alleviating poverty production operators and the poor through the questionnaire form and analyzes the main problems of Tai’an City micro-finance institutions through comparing the supply and demand of micro-credit.The paper expounds development situations and patterns of typical micro-finance institutions as well as the interest rate policy,credit supporting policy,industry regulations and internal risk management abroad and further puts forward some countermeasures for the sustainable development of micro-finance in Tai’an.This article’s innovation is to investigate contrapuntally microfinance’s problems of supply and demand in Tai’an and further put forward countermeasures and development path of micro-finance through the research of domestic and foreign micro-finance hoping to build a good environment for micro-credit and make micro-credit play real role in market-oriented economy and further promote the construction of the financial system.