Research On The Sustainable Development Of Guangxi Small Loan Companies

As one of the main forms of commercial microfinance in China,small loan companies have provided financial support for the development of China's “agriculture,countryside and farmers” and small,medium and micro enterprises and have played an important role in promoting it.Sustainability is a measure of the ability of MFIs to cover costs with their own operating income without relying on external contributions and subsidies to achieve independent survival and development.It is an inevitable requirement for commercial MFIs.Guangxi began to implement pilot projects for small loan companies in 2008.The industry has experienced rapid development.Institutional scale and loan balances have been growing at a very rapid rate,creating good economic and social benefits for the development of the Guangxi region.Since 2015,consistent with the status of the national small loan industry,the development pace of the small loan industry in Guangxi has slowed down significantly: the growth of loan balances has been slow,the number of institutions and operating efficiency have begun to decline in different degrees,and the sustainable development of the entire small loan industry is facing problem.Based on this background,it is of great practical significance to study the sustainable development of small loan companies in Guangxi.This article first analyzes and summarizes the overall industry data of Guangxi small loan companies,and analyzes them from six levels: general overview,policy system,loan status,financing status,risk control status,and sustainable development status.The status quo of the industry development,and to explore the problems at all levels.Secondly,this paper specifically collects panel data on the financial data of 74 microfinance companies in Guangxi for the period 2012-2016,and uses the OSS as a measure of sustainability,then select variables from two dimensions: financial performance and macroeconomics for regression analysis and explore the factors that influence the sustainable development of small loan companies in Guangxi.Finally,based on a comprehensive analysis of the above two results,it is concluded that the lack of industrial legislation,industry competition,industry self-defects,external financing difficulties,lack of regulatory power,and the downturn in macroeconomic have constrained the sustainability of small loan companies in Guangxi at this stage.And put forward specific suggestions from the government supervision department and the microfinance company itself,hoping to play a constructive role in promoting the sustainable development of the Guangxi small loan company.