Research on the Development of Micro-credit in China

Author: Cao Zijuan
Publisher:
Publish Date: 2006-01-01
Features: Microfinance is a type of loan specifically designed for a portion of the low-income population. In China, it has a history of only about ten years. In the long run, financial institutions and microfinance organizations can participate in microfinance operations in various forms. Financial institutions should learn beneficial experiences and practices from the credit models of microfinance organizations. The loan amount range of microfinance should be determined based on the economic development of different regions, while also considering adjustments as the regional economic structure and overall development level change. The four credit models of microfinance—the group lending model, village bank model, individual lending model, and hybrid model—should be combined with local realities and adjusted accordingly. In terms of regulation, in the long run, the microfinance industry association should implement self-regulation, while the government should provide certain policy guidance. However, microfinance institutions that absorb social savings need to be handled with caution. The focus of microfinance poverty alleviation should be further shifted toward poverty-stricken areas in central and western regions. The government should strengthen the construction of infrastructure in poverty-stricken areas. It is advisable to establish a policy-based insurance system and a microfinance statistics system. This book comprehensively, thoroughly, and objectively evaluates the development of microfinance in China. We believe that many of the analyses have certain theoretical value and practical significance and will have a certain impact on the development of microfinance in China!