Analysis Of Microcredit Risk For Poverty Alleviation

As a special field of Inclusive Finance in China,financial poverty alleviation is the weakest part and the most difficult part to break through.Rural micro-credit,as means of effectively reducing poverty,has attracted wide attention in recent years.Rural finance has entered a "bottleneck" period.Low-income rural households are mainly facing the problem of "difficult loans",and rural financial institutions have also faced the phenomenon of "difficult loans".In addition,China’s current financial system is still imperfect,such as rural capital outflow is serious,farmers’ awareness of policy is law.Therefore,microcredit is accompanied by a series of potential,stubborn,high-frequency credit risk.By analyzing the poverty alleviation situation and development process of micro-credit,this paper analyzes the risk of poverty alleviation micro-credit in practice.In addition,choosing Hubei Province,a major county economy province in central China,as the main research object.This paper includes five chapters.The first chapter introduces the research background,purpose,significance,research methods,innovations and literature review.The second chapter is the theoretical analysis of poverty alleviation credit risk and compares the differences between general micro-credit and poverty alleviation micro-credit.The third chapter briefly describes the development status and risk form of China’s micro-credit in the process of poverty alleviation.The fourth chapter carries out empirical analysis.From the perspective of farmers,in-depth analysis of the origin and formation characteristics of micro-credit risk,and explores the default risk of micro-credit of farmers.Based on the data collected from official databases and field surveys,this paper establishes a Logistic model and an ISM model for empirical analysis,and deeply analyses the main influencing factors and internal structural levels of farmers’ micro-credit default risk,so as to effectively prevent and control farmers’ default risk.This paper draws the following conclusions.There is a negative correlation between individual households’ marital status and risk of breach of contract.The incidence of defualt of left-behind families is higher than that of non-left-behind families.The possibility of default of very poor families is the greatest,followed by families living a life at a subsistent level.Households’ attitude to risk also has a great impac which will directly affect the occurrence of default.These factors also have the mutual influence transmission mechanism at the structural level.Through analysis,this paper puts forward corresponding policy suggestions to improve the effectiveness of poverty alleviation micro-credit,prevent and control the default risk of farmers’ micro-credit,promote the sustainable development of micro-credit in rural areas,and promote the economic development of poor areas.