Study On The Development Of Heibei Rural Credit Cooperatives

Rural credit cooperatives of Hebei Province are important part of rural financial system of Hebei and it also has the important financial power to push the new rural construction. But for a long time, the main force of finance of rural credit cooperatives can not play a role sufficiently. The lower quality, the higher non-performing loan ratio, the lack of clarity of internal property rights, the imperfect corporate governance structure and the increase of financial risks accumulated of financial assets can not meet the financial needs of farmers. Therefore, systematically analyzing the problems existed in the development of the rural credit cooperatives in Hebei Province, combining the experience of home and abroad in order to realize the innovation and reform of internal property rights system setting the clarity of property rights and the improvement of corporate governance structure as the core, to strengthen the ability to guard against and reduce financial risks, and to improve the level of meeting the financial demands of the farmers and guaranteeing the healthy and sustainable development of rural credit cooperatives have great theoretical and practical significance.Based on the theory of financial development, the property rights theory, the theory of financial risks, as well as supply and demand theory, this paper learns from some advanced experiences of rural cooperative finance or rural credit cooperatives of developed countries, comparing and analysing the problems existed in the development of rural credit cooperatives in Hebei Province through analyzing the development process of rural credit cooperatives. This paper uses the empirical analysis method to analyze and estimate the reform achievements of Hebei rural credit cooperatives and the rural economic development contribution rate of Hebei Province to measure,calculate the financial supply ability and the farmers' demand ability of rural credit cooperatives in Hebei Province and give an Empirical Test. It has a test in amounts, estimates and diagnoses the financial risk level faced by rural credit cooperatives in Hebei Province by using a series of indicators, and analyses normly the present situation, flaw, insufficiency and origin of property rights characteristics and legal person governance structure of rural credit cooperatives in Hebei Province. At last it puts forward the policies and suggestions which guarantee the healthy and sustainable development of rural credit cooperatives in Hebei Province. The paper has obtained the following research results and conclusion.1. By sorting out the latest study of general theories of financial development and the rural finance theories, the frame studying of rural finance development theories has been formed. Financial restraint and financial liberalization can not resolve all problems of rural credit cooperatives in developing completely. And government's appropriate intervention could ensure the healthy development of rural credit cooperatives under the situation of the out of order marketplace.2. Through comparatively researching of the development and change law of cooperative finance of some developed countries which have a better significance for reference, the paper argues that the common characteristic of developed countries such as Germany,America,Japan and France is the commercial finance and the cooperative finance coexist.The cooperative finance is the foundation and the commercial finance is the development means. This provides the scientific theoretical basis and useful experiences and ways for reforming the property rights and breaking away from the operation mess of rural credit cooperatives in China.3. The paper uses the data envelopment analysis (DEA) to analyze the reform performance of Hebei rural credit cooperatives, which shows that the financial development is still an important impact factor of economic development in the rural financial field. The influence of the financial development level of rural credit cooperatives on the rural economic growth is remarkable. However, the influence of the development efficiency of rural finance on the rural economic growth is relatively weak. The rural economic growth is failed to bring about the corresponding elevation of the financial development level of rural credit cooperatives.4. Taking the analysis of the economic behaviors of the farmers as the breakthrough point and taking the investigating data of the farmers in Hebei Province as the analysis gist, the paper analyzes the financial need level of the farmers in Hebei Province, the rural financial institutions and especially the financial supply ability of rural credit cooperatives from the perspective of supply and demand using the demonstration method. It uses the Contingency analysis and Probit model to carry through economy measures analysis of the financial needs of rural credit cooperatives. The results present that the lack of financial supply level and structure of rural credit cooperatives in Hebei Province and severe financial repression, difficult to meet the financial needs of farmers. The financial function of rural credit cooperatives need to be positioned according to the market-oriented principles. The rural credit cooperatives can give selective support to the other farmers'loans in addition to meeting the requirements of members. The agrarian finance system adapting to rural finance need characteristic should be constructed, the diversified pattern of rural finance supplies should be formed step by step, ande the supply of rural finance should be increaed.5. Combining with the economic theory of property rights, the paper elaborates the characteristics of the property rights of rural credit cooperatives and presents that the property rights of rural credit cooperatives is the property rights with the nature of incomplete contract and composite rights. By investigation and case analyzing of property rights institution and corporate governance structure of Hebei rural credit cooperatives, this paper finds that unclear property rights and faulty governance structure still become the main "bottleneck" factors which restrict rural credit cooperatives'healthy development. This paper also points out that the separation of surplus controlling power and residual claim is the main inherent system factor which makes property rights institution and corporate governance structure lack inherent driving force. It makes the property rights corporate governance structure study of rural credit cooperatives rise into the tier of theory.6. This paper uses the general financial risks theory and the rural financial risks theory to analyze the problems on financial risks faced by rural credit cooperatives in Hebei Province in four aspects and presents that credit risk, market risk, operational risk and systems risk are the major risks faced by rural credit cooperatives. It uses fuzzy comprehensive evaluation and analytic hierarchy process to build index system and inspect, evaluate the level of financial risk of rural credit cooperatives in Hebei Province. The results bring out the conclusion that get the conclusion the level of financial risk of rural credit cooperatives in Hebei Province is in regular state.7. To deepen the reform of rural credit cooperatives and effectively resolve the problems existed in the development of rural credit cooperatives is a system engineering, which is not only their own problem of rural credit cooperatives, but also affected by the policy restraint of government and the incomplete rural financial markets. To create a fair and just environment for competing and developing and to strengthen the self-development of rural credit cooperatives are the necessary conditions for healthy development of rural credit cooperatives.