Microfinance is introduced into China in the 1990s. It had went through 3 phases since the beginning, namely the pilot stage when all Microfinance practices are sponsored by charity funds predicated on jobs, the promotion phase when the government subsidized some regular financial organization and encouraged them to run Microfinance businesses, and the accelerated development stage of commercial Microfinance firms when private capital is supported to enter Microfinance industry by a series of policies released by the government.
CFPA Microfinance is the biggest charity Microfinance Company concentrated on supplying Microfinance services in the rural areas in China. It grew with the Microfinance industry in China, and experienced transformation from a charity -fund - predicated NGO to a company that keeps sustainable development. Up till the end of November 2014, it covers 16 states, 140 counties, with 230,000 clients, and the balance of loans is 1,800,000,000 RMB. Farmers' Self-reliance Branch of CFPA Microfinance in Shangyi County was commenced in 2008, with a local condition of little marketplace ability, bad climate, and single-product economy. Soon after its opening, it had found the "Grameen-modeled" group-loan merchandise marketed by the headquarters doesn't suit the neighborhood condition; it actively transferred to the individual-loan product model, and meanwhile provided value added services.
Eventually, it maintained a unique location in the intense competition in the local area, and kept zero default rate and zero rate that was late from way back its launch. Nevertheless, recently, as private capital is supported to enter the Micro-finance business, Shangyi division is facing new challenges, meanwhile, the branch manager had discovered problems in complying with the firm loan process for risk control applied by the headquarter and meeting the neighborhood customers' needs. He considers this issue would even threaten the division's company in the long run, and he needs a remedy.
PUBLICATION DATE: December 09, 2014 PRODUCT #: TU0090-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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