China has more than 1300 microfinance companies

Xinhua Beijing, March 25 (reporter Wang, Yiu Junfang) reporters from the second microfinance institutions held here and the international investors exchange, learned that as of the end of last year, the total number of microfinance companies in China has more than 1300, the number of practitioners more than 14,000 people.　　Yu Li, director of the financial markets of the PBC Research Bureau, disclosed at the meeting that by the end of December last year, China's microfinance companies amounted to 1334, with more than 14,500 employees, with a source of more than 94 billion yuan, each loan balance exceeding 70 billion yuan, and the total bank loan ratio of 0.19%.　　Yu Li introduced, in addition to Tibet, Hainan, Hunan and other three provinces, the country's other provinces have microfinance companies, of which the Inner Mongolia Autonomous Region has the largest number of microfinance companies to 149, ranked in the top five provinces are Inner Mongolia, Hebei, Anhui, Zhejiang, Shanxi. It is reported that microfinance companies are not to absorb public deposits, operating micro-loan business of limited liability companies or joint stock company.　　At present, microfinance companies in China are mainly invested in micro-enterprises such as private economy, and provide credit service for self-employed and peasant households. Jiao Jin, vice chairman of the Ministry of the People's Bank of China, said that since microfinance companies are mainly for SMEs and middle and low income groups, it is of great significance to set up a certain number of microfinance companies in order to establish a universal and equitable financial system.　　He suggested that the State should strengthen its support for micro-finance companies, including microfinance companies. According to the introduction, in the source of funds, the state of microfinance companies have more stringent provisions. In 2008, the CBRC and the central bank issued the guidance on microfinance companies that the main sources of funding for microfinance companies were capital contributions from shareholders, donations, and the integration of not more than two banking financial institutions. The balance of a microfinance company's acquisition of funds from a banking financial institution does not exceed 50% of the net amount of capital.