Research Of China’s Rural Credit Cooperatives Diversified Operating Performance

With new round of property rights reform of China’s rural credit cooperatives, its assets expanded rapidly, traditional savings and loans business market share continue to increase, all other business also achieved rapid development, which vigorously support the development of the Agriculture、Rural areas and Farmers. But in the face of the rapid advance of interest rate liberalization, the onslaught of Internet finance, the village Banks, and other commercial Banks, diversified management become the important means of rural credit cooperatives to cope with fierce competition. But different size, different regions have different speed of the development of rural credit cooperatives, implement diversification strategy can improve the efficiency of agriculture, profitability, reduce the management risk, is still exist many disputes. Based on the diversification of China’s rural credit cooperatives as the breakthrough point, the influence of the use of Rural Credit Cooperative of Shandong’s business data has carried on the empirical analysis, and puts forward relevant policy Suggestions according to the research conclusion.The main research contents are:(1) Analysis the diversification of rural credit cooperatives, agriculture efficiency theory. Define the meaning of diversification, agriculture efficiency, analysis the present situation of the diversification and efficiency of rural credit cooperatives; discuss problems and restricting factors of the development of. (2) Analysis the support agriculture efficiency and influencing factors of the empirical. Using the expected output of the three stage DEA model, to eliminate the external environment factor and the random error’s influence on the efficiency of agriculture, Rural Credit Cooperative of Shandong’s agriculture efficiency function and influence factors in the empirical analysis. (3) Diversification static analysis of the rural credit cooperatives operating performance. Choose two kinds of diversity index (HHI, El), and from the aspects of income diversification and asset diversification measure diversification static effect of rural credit cooperatives operating performance. (4)Under the asset scale perspective, measure the effect of diversified management of rural credit cooperatives operating performance. Hansen threshold panel model is adopted to discuss the assets under the difference of rural credit cooperatives of the relationship between diversification and business performance. (5) Diversification of the rural credit cooperatives dynamic effect. GMM panel model using the system, discuss the diversification of the dynamic effect of rural credit cooperatives management performance. (6) Suggestions of the improvement direction of diversification of rural credit cooperatives in China. From the internal management and external financial environment of rural credit cooperatives puts forward improvement path, and put forward rural credit cooperatives to improve policy recommendations of diversification strategy.The main research conclusions include:(1)From the empirical results support agriculture efficiency, using three phase correction of undesired output DEA method, calculate the support agriculture efficiency value, look from the time change trend, adjusted the average efficiency of Rural Credit Cooperative of Shandong’s value changes more gently, less volatile. (2) Diversification effect of static analysis shows that income diversification is negatively related to the profit ability, the management risk, and positively related to the efficiency of agriculture, namely income diversification reduces the profitability of rural credit cooperatives, but also reduce the management risk, improve the efficiency of agriculture; From the perspective of the empirical results of diversification, diversification is negatively related to the profitability and efficiency of agriculture, positively related to the management risk, that is, diversification reduces the profitability and efficiency of rural credit cooperatives, also increase the risk management. (3) Perspective of asset scale, income diversity and agriculture efficiency and the management risk of rural credit cooperatives exist double threshold, and profitability, there is no threshold effect. In other words, different sizes of rural credit cooperatives to implement diversification for agriculture efficiency and the influence of operating risk is different, but does not significantly affect profitability. Diversification of assets between rural credit cooperatives operating risk of single threshold effect, double threshold effect exists between the profitability, efficiency and support agriculture there is no threshold effect. (4)Estimation method based on dynamic panel system GMM model, studies of the operating performance of the rural credit cooperatives diversification of dynamic effect, found no matter choose diversification diversified income or assets as explanatory variables, the impact on rural credit cooperatives operating performance indicators are there exists dynamic changes, so the analysis of the effectiveness of diversification of rural credit cooperatives, to consider the impact dynamics. In addition, the estimated results also show that the operation performance of rural credit cooperatives will be late for dynamic lag influence business performance.The main innovations include:(1) Effective measure for supporting agriculture. Using the expected output of SBM model to modify the traditional three stage DEA method, make up for the traditional DEA model when input redundancy and output deficiency defects evaluation of distortion, and the rural credit cooperatives of "undesired output" distinguish treatment, to achieve more accurate measurement of the efficiency of agriculture. (2) Analysis of diversified business impact on the efficiency of the rural credit cooperatives supports agriculture. The existing problems of diversified research, more focus on the performance of commercial Banks, the influence of the risk, etc.. but involves the diversified rural financial institutions to support agriculture research on the effects of efficiency has not yet been reported. Based on the background of rural credit cooperatives to implement diversification strategy, to discuss the effective support on the Agriculture、Rural areas and Farmers. (3) Under the perspectives of assets under the effectiveness of the diversification of rural credit cooperatives. Using threshold model, calculation of assets under the perspective of diversity and the relationship between operating performance and risk of rural credit cooperatives, intuitively reflect the size effect of credit cooperatives in the role of diversification. (4) Use a variety of indicators to measure degree of diversification of rural credit cooperatives. Integrated use of Hector fanta, index and entropy index measure degree of diversification of rural credit cooperatives; On the description of the diversification, from the perspective of revenue and asset Angle are analyzed respectively, and a more comprehensive and accurate reflect the condition of the diversification of rural credit cooperatives.