Institutional Research On New Rural Cooperative Finance Organization

In order to solve the financial insufficient supply in rural areas, the lack of competition, farmers credit constraints and other issues, the China's banking access policy was adjusted to relax in rural areas to promote the diversification of rural finance development, and the new rural cooperative finance organization which is built by cooperative system is the emphasis of this round of rural financial reform and development priorities. According to practice, the new rural cooperative finance organization play a good role in the financial allocation for the development of the rural financial market, promoting the economic development and smoothing the household consumption fluctuations.Based on new institutional economics theories, this paper combined with China's agriculture and rural development, take the actual situation of a multi-mode new rural cooperative finance organizations as the main research object, and give an analytical framework for the development of the phenomenon of multi-mode system. On this basis, these new rural cooperative finance organization's institutional characteristic, institutional change, institutional environment, functional performance was discussed with systematic theory and empirical research. It is according to the thinking line of"descript the current situation—theoretical analysis—empirical analysis—policy and suggestion". This paper is divided into seven parts. The first part is to define the study scope of the new rural cooperative finance organization and make clear the purpose, meaning and content of this study. It also learns and comments on the existing research about the cooperative finance organization, and in the end of this part the author propose what we should research in the further. The second one is define the origin and properties of the new rural finance cooperative institutions by the nature and evolution of cooperative financial, and give a new classification standard to the new rural cooperative finance organization. The third one is to discuss the appearance and development internal mechanism of the new rural cooperative finance organization from both the institutional supply and demand of the institutional innovation, and the reason for the development of various types. In the fourth and fifth part, take the internal financial cooperative of the farmer specialty cooperative organization and poverty villages financial cooperative as the example to discuss their institutional characteristics, organizational functions and the problems in the development. In the sixth one, from the national policy environment, the financial cooperative organization's own system and the members of the organization of three levels to find the influencing factors of the organization's development. The last part is based on analysis of the first six parts to make a conclusion and give some propose policies and suggestions for the healthy development of the new rural cooperative finance organizations.It makes some conclusion after analysis. Firstly, financial cooperation was initiated by the farmers once again in our country shows the institution itself have a strong vitality and inclusiveness, and the government as the leader in previous financial reform still play a very important role in the development of the new rural cooperative finance organization, while imposed institutional change caused by government domination and induced institutional change caused by farms requirement form the appearance and development of the new rural cooperative finance organization. Secondly, Owing to the organization system in operation, the heterogeneity of the members, the characteristics of rural financial markets, the governments at all levels support to the organization and other factors make the new cooperative finance organizations in the development process showing many different type and model. Thirdly, these organizations are all built by cooperative system, but they have differences in the organization structure, organizational functions and other aspects, because of the regional difference in our country, the design function orientation of various types of organizations and other factors. Fourthly, shortage of funds, the imperfect of internal governance is main problems which hinder the development the new cooperative finance organizations.According to conclusions above, it puts forward some policies and suggestions. First of all, financial cooperative laws should be made to protect the dominant position in the market. Secondly, continue to relax the rural finance policy, and strength the pilot of the new cooperative finance organizations. Besides, establishment of a flexible system of property rights to ensure the originations'viability and efficiency. In addition, adhere to the cooperative nature and its fundamental principles, regulate the internal governance structure. What's more, the government should give necessary guidance and support. Last but not least, widening financing channel, and establish links with formal financial institutions.