MFI Report

In 2005, the People's Bank of China (PBC) launched a pilot program to establish seven credit-only companies within the broader context of the government's effort to push financial services out to the rural, predominantly agricultural, regions of western China. RMCC was the first MCC developed as part of the pilot project. In 2007, GTZ and PBC supported a team of international experts that assessed the seven pilot MCCs, and on the basis of its potential for future growth and outreach capability, selected RMCC for further technical assistance and support as part of the second phase of the GTZ/PBC bilateral agreement. In November 2008, GTZ, along with a German consulting partner AFC, began to implement the second phase of the "Financial Sector Development Program". GTZ’s long-term technical support is developing RMCC’s human resource development, internal procedures and controls, internal organizational structure, risk management systems, accounting and reporting systems, and MIS, all in line with international microfinance best practices. To date, RMCC fully utilizes the SEEP Frame tool and reporting format, has installed and is utilizing an advanced MIS loan tracking system, and has integrated MicroFin into its risk management and planning activities. RMCC is also the first non-bank financial institution in China to offer a health and medical care financing loan product through an innovative private-public partnership. RMCC benefits from the Chinese government’s continuing role in developing supportive policies and an overall strong enabling environment for MCCs development. Through its strong commercial base, RMCC has the potential to develop linkages with the formal financial markets within China. Moreover, RMCC has already attracted international investors expressing interest in equity investment and broader collaborative partnership. Hide