Abstract
Because of lack of collateral and formal financial information, family aquacultures and small boat owners find it difficult to get loans from formal financial institutions. Fishery microfinance can partly solve the information asymmetry and incomplete contract problems in rural financial market, and it is an effective complement to formal fishery finance. The service object of fishery microfinance is mainly micro-enterprises in fisheries, including family aquacultures and small fishing boats. Fishery microfinance providers include formal financial institutions and many kinds of micro-financial institutions, among which China Fishery Mutual Insurance Association (FMIA) is the most famous one. Although micro-finance has a 20-year-history in China, there are still some problems that block its advance. The market is huge, but the existing providers are not providing good services and most are not sustainable. There is still a long way towards commercial operation and financial sustainability.
Highlights
Micro-finance is defined as a series of small financial services provided to the poor or low-income households or micro-enterprises
It is an effective complement to formal fishery finance
According to a sample survey made by China Fishery Mutual Insurance Association (FMIA) in 2010, 93.55% of boat owners are in shortage of funds [3]
Summary
Micro-finance is defined as a series of small financial services provided to the poor or low-income households or micro-enterprises. Micro-financial services include micro-credit, micro-deposit and micro-insurance, of which micro-credit is the core business [1]. It arose in the mid of 1970s in the 20 century. After almost 40 years of practice, especially in recent 20 years of development, micro-credit gets promotion rapidly in Asia, Africa, Latin America and other developing countries
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