Study on Rural Microfinance System’s Defects and Risk Control Based on Operational Mode

Abstract

An attempting investigation of the present situation of the town and village’s micro credit in the rural areas, by modeling the basic operational mode of the rural credit cooperatives and its cash flow process, as well as doing the analysis and assessment of risk and the corresponding problems, concluded that whether the rural credit cooperatives in rural areas of the most common microfinance mode is healthy or not, so as to predicted further the possible development and continue to pay attention to the latest development phenomenon.
Key words: Rural microfinance; Rural credit cooperatives; Cash flow; Risk assessment; Reform trend