A Study of the Fragility of Microfinance Institutions in China: Take Zhejiang Province As an Example

摘要

As a way of financing the gaps in bank system, microfinance has been favored by many micro-enterprises and low-income people in China. However, neither the international nor the domestic has given a clear definition. On the theoretical level, the development of foreign microfinance industry is relatively mature and its research is in-depth. The introduction of microfinance in China is relatively late, and the development time is less than ten years. The rapid shrinking of the microfinance industry and industry funding crisis has proven the need for correct theoretical guidance. From the perspective of financial fragility, this paper argues that the fragility of microfinance is similar to the banking sector based on existing domestic and foreign literature, and analyzes the current level of fragility in Zhejiang Province based on empirical research, then makes targeted recommendations from the perspectives of company and government.