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On Joint-stock Reform And Corporate Governance Of Rural Credit Cooperatives

Posted on:2012-09-01Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y MingFull Text:PDF
GTID:1119330368478388Subject:Agricultural Economics
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Rural Credit Cooperatives (RCCs) have become the most important component of rural finance, the reform of RCCs is directly related to financial efficiency in rural areas, related to the construction of new socialist countryside, also related to our social political and overall national economic development Strategy. Since the founding of our country, the RCCs, after several rounds of reform, its internal mechanisms and external systems are constantly changing, RCCs have become a term of economy with Chinese characteristics.Currently, both the theorists and the practitioners consider as not only need the commercial finance, but also need to co-finance and financial policy in rural areas. It can be fully meet through various forms of financial institutions. Central Government also proposed to "establish and improve the financial basis of cooperation, commercial finance, financial policy division of labor in the rural financial system ". I agree with this view. However, the direction of the reform of RCCs is still controversial, some scholars believe that the RCCs system shall be regulated in a cooperative way for rural financial services to provide financing; some scholars believe that the RCCs should be regulated in a stock cooperative system in accordance with the manner. Which direction of reform is more practical to adapt to RCCs?In 2003, the reform policy of RCCs is issued in a balance of different views, both the proposed overall goal of clear property rights, but also allows to choose all over the cooperative system, stock cooperative system and the stock of three Property form. The resulting cooperative system of reservation are rural credit cooperatives (RCCs), the country-level RCUs and rural commercial banks (RCBs). However, the initial set of market-oriented reform, the principles and objectives of clear property rights did not realize that the existing types of rural cooperative financial institutions (including RCCs, country-level RCUs and RCBs) is still far away from modern financial. And because of the mandatory system of government-led changes in the formation of path dependence, the RCCS will inevitably produce a new provincial RCUs, formed a strong sense of administrative management system of RCCs. Under these conditions, the nature of different kinds of grass-roots rural cooperative financial institutions, the basic operation mode of convergence, the gap does not reflect the nature of their property rights different effect on the market, and the absence of property rights is still very serious. Therefore, how to understand the nature of existing rural RCCs, which type of reform is still an important issue to be studied.In this regard, the paper describes the process of reform and development of RCCs, and the characteristics and effects of institutional change were evaluated. I believe that RCCs was originally established in accordance with the principles of cooperative financial organization, but after several rounds of reform, the history and reality driven by multiple factors, already seriously out of the cooperative financial orbit, the nature of property has been a fundamental changed. Existing RCCs in name only credit cooperatives, cooperative financial areas should not be classified as RCCs has become the de facto commercial operations. Source of the money paid for shares and generalization, the scale is too large, higher levels of legal, administrative and other practical obstacles to institutional constraints, the existing rural credit cooperatives have been impossible to return to the cooperative financial system, with the cooperative nature of the reform of property rights is difficult to achieve Clear, well-functioning property rights reform objectives, it is difficult to adapt to the actual development of the current rural credit cooperatives. Realistic option is to further the existing RCCs on the basis of clear property rights, real reinvented according to the direction of stock, making the rural commercial finance. For the rural areas of cooperation remain the financial needs of the cooperative movement only with the depth of expertise in the market based on the re-generation (such as rural credit union funds, etc.), policy financial requirements are mainly to be met by policy banks. Joint-stock reform of rural credit cooperatives at the same time, the state can still be from the policy level, through the window guidance, financial subsidies, tax concessions to the commercial banks to make farmers and small agricultural producers involved in financial operations to guide and inspire. This article focused on the research of existing RCCs.RCBs as the results of RCCs joint-stock reform in China. Up to now, China has successively set up more than 80 RCBs. The RCBs have made a number of active exploration on management system, operation mechanism, etc. However, how to look at the development of RCBs, the inherent requirements, how to make RCBs to truly become an independent legal person status and operation of efficient, risk control, to adapt to rural economic development of the modern rural financial enterprises in the internal operation mechanism and the external policy environment There are many defects. Internally, the principal owner of the RCBs, the situation is very conspicuous absence, lack of property rights play an essential function of the foundation and conditions for shareholder oversight of corporate governance in the high cost of high costs and agency problems are quite prominent. From an external point of view, chaotic management of RCCs in the past, management is extensive, prominent cases of moral hazard, over-administration and the management system of RCCs can be achieved remarkable results in the short term, but long term is not conducive to promoting grass-roots RCBs Improved efficiency. Therefore, the study of joint-stock reform of RCCs, needs to study both the internal operation mechanism, and the external management system.This article attempts to use co-finance theory, modern property rights theory, corporate governance theory and institutional economics, etc. at the use of game analysis and empirical research, based on the reform of RCCs to discuss the path and direction, and most joint-stock reform of RCCs Based system of property rights, the most critical and most complex corporate governance external management system to start, some of the reform of RCCs have reference value ideas and perspectives. This innovation is mainly reflected in:First, the RCCs from the existing capital stock structure, business size, asset composition, management structure and other aspects of the empirical analysis, from a realistic perspective of the RCCs system is difficult to walk the road of reason Proposed grassroots RCCs system has been modified do not have the condition, only in accordance with the direction of the restructuring of joint-stock rural commercial bank. Second, the reform of RCCs is the key to stock ownership structure and corporate governance. In particular, pointed out that the current restructuring of rural.credit cooperatives, set up rural commercial banks to speed up the case of an urgent need to quickly establish an open, transparent platform for collecting sponsors. Third, in the use of game theory to analysis the model for RCCs, and point that the key is to reduce the costs of monitoring and control of agency costs. Fourth, joint-stock reforms of RCCs come from the internal needs and external management system.
Keywords/Search Tags:Rural Credit Cooperatives, Co-finance, Joint-stock Reform, Property Rights, Corporate Governance, Management System
PDF Full Text Request
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