An Empirical Study On Financial Performance Of Microfinance Institutions Of Yulin,Northern Shaanxi

There are 700 million people living in rural areas of China,more than half of rural residents do not have access to financial services,effective way to revitalize rural finance,to meet the needs of farmers on the capital,is the only way to promote rural economic development,and solve the problems of agriculture and rural areas.As a credit mechanism for poverty alleviation,microfinance has experienced more than ten years of history in our country through the pilot and promotion operation.Compared with the steady and rapid development momentum of international microfinance,China's microfinance practice basically stays at the level of foreign countries long years ago.The financial performance of microfinance institutions is very poor and it is difficult to realize its own financial sustainability.Therefore,the study of financial performance of MFIs is particularly important.Domestic and foreign scholars on the financial performance of microfinance institutions are mostly based on the national perspective,the quantities of county-wide research is relatively less,Rural Credit Cooperatives(A kind of microfinance institution)is the financial institution which provides more financial support for the farmers in the county area.In view of this,this paper evaluates and analyzes the financial performance and its influencing factors of the rural credit cooperatives of 12 counties of northern Yulin of northern Shaanxi in 2012-2017,and puts forward some suggestions to further improve the financial performance of the organization.First of all,this paper summarizes the domestic and foreign research trends and the main performance evaluation methods related to the financial performance of microfinance institutions,This paper makes a brief analysis of the present situation and existing problems of the performance evaluation of microfinance institutions,And elaborates the concepts and theories related to the financial performance evaluation of microfinance institutions.Secondly,the financial performance of the organization is evaluated from the four perspectives of safety,liquidity,profitability,development ability by means of financial index analysis.At the same time,the data envelopment Analysis(DEA)is used to analyze the financial performance of the organization.Finally,based on the analysis of the financial performance of the DEA-based sample organization,this paper discusses the financial performance of the institution from the aspects of risk management level,absorption capacity,asset management ability,asset-liability ratio and microfinance technology Impact.And analyze the results of financial performance evaluation,make relevant recommendations to raise the financial performance of the organization.The empirical results show that the financial performance of the sample organization is generally good,but still needs to be improved.There is a significant positive correlation between the risk management level,the absorption capacity,the asset management ability and the microfinance technology and the financial performance of the organization.There is a negative correlation between the asset-liability ratio and the financial performance of the organization.