Study On Running Risk Surveillance And Early Warning System Of RCCs

RCCs(Rural Credit Cooperatives) are important financial institutions to support rural economic development. From their establishing, it is a important task for RCCs to support the development of rural area, agriculture and peasantry. After years of development, RCCs now have became the most important rural financial institutions in rural credit market and the most important source of rural developing funds. By June 2005, the agricultural loans of RCCs amounted to 1.0299 trillion yuan, which accounting for 87.5% of whole agricultural loans of financial institutions in China.In the vast rural areas, the market share and business network of RCCs have unparalleled advantages with other financial institutions. This unique and monopolistic advantage ensures the favorable position and profit potential of RCCs in rural financial markets. Agriculture is the foundation industry of our country and has maintained a steady growth trend for many years. Through the expansion of agricultural loans, RCCs have got much financial support from the government.RCCs should actively use features of rural financial market, overcome the difficulties such as scattered agricultural funds demander, low income of peasants, small loans unit, high risk in agricultural production, continuously improve profit levels while maintaining services for rural area, agriculture and peasantry. In the future development, RCCs should maintain the present business direction.With the release of"RCCs reform blue print", the reform of RCCs officially started. This is a important reform of RCCs in last 50 years. The reform is not only a reform in property rights system innovations, but also a breakthrough in industry management.RCCs originally administered by ABC and the People's Bank of China, now by the provincial government, which shows a clear local characteristics. In the monitoring system, RCCs are supervised by CBRC. Therefore, to strengthen supervision RCCs of all levels and to establish and improve the supervising system is an important task in reform of RCCs.After China's accession to WTO, financial risk brought by the economic transformation...