Research On Property Rights System Reform And Operational Result Of Rural Credit Cooperatives

Rural finance is the core of agricultural economy. Construction of Modern agriculture and the new rural areas requires a large amount of capital input , in addition to relying on the state's financial resources , the majority should come from the rural financial agencies (mainly is rural credit cooperatives in Chinese) and social capital support. As an important element of the allocation of capital in rural economic development, rural credit cooperative (RCC)is the essential elements of capital allocation agencies in rural economic and social development. RCC played a decisive role in supporting rural economic restructuring and promoting rural economy and society's development.Since the founding of the PRC and half a century's institutional change, especially the 15th States document [2003], promulgation and implementation of , has opened a new round of the pilot reform of the Rural Credit Cooperatives, reform the property rights system has been difficulty and focus of this round of reform. So far as more than five years, reform RCC's property rights system had been achieved many results, but at the same time there are also many problems not to be neglected. Based on this, deeply research this round of RCC's property rights system's reform, roundly reflect and objectively evaluate the new sequence of rural credit cooperatives'property rights system reform and operational result , in order to solidify the achievements that have been made, correct deviation and lacking in practice, ulteriorly propose some constructive suggestions about reforming and intensifying RCC's property rights system's reform, improve corporate governance, roundly upgrade overall competitive strength .which has high theoretical value and directive significance in reforming RCC to be modern rural financial institutions which has distinct property right and idiomatical operation , and sparing no effort to support modern agriculture and new rural communities construction.This research guided by the basic theory and discipline of cooperative economy, property rights economics, neo-institutional economics, agronomics ,finance, and game theory.Multiply utilized investigated communities (handed out "subject investigation questionnaire" and investigation ) ,quantitative &technical economics, qualitative and Normative analysis (systems analysis, relative analysis,graphic viscosity, causal analysis and inductive deductive reasoning ), mainly lined on the property rights'reform of RCC and its operational effectiveness, explored changing law and development trends of property rights'reform of RCC, summarized and concluded the results of rural credit cooperatives'property rights system since 2003,based on policy goal of the 15th States document [2003], self-designed a set of index system of"rural credit cooperatives'property rights system reform"which included eight aspects and thirty items.Made positive analysis based on reform of rural credit cooperatives'property rights system including Shan dong ,Jiang su , Shang hai . made an objective analysis and evaluation on the status and operation of of rural credit cooperatives'property rights reform. To be sure of interim achievements in reform, made deeply analysis and investigation of its constraints, learned experience of developmental pattern, operation mechanism and the institutional environment's establishment of foreign rural credit cooperatives'property rights system construction selectively, systematically proposed basic framework and operational system of clarifying property right, improve corporate governance ,innovate inside control system,promote of rural credit cooperatives'management result roundly .This study's framework and main contents are as follows:Firstly, Background, purpose and significance of the research subject. Clarified methods and techniques , stuctured arrangement and main frame structure of the research, defined and explained the scope of the research subject. Secondly, expounded the related concepts and theories of co-operation finance, property rights system. Thirdly, reviewed the changes of rural credit cooperatives according with the RCC's logical historical evolution. Fourthly, made a comparative analysis of the reform status quo and characteristics of the property rights system of rural credit cooperatives. Illuminated Chinese characteristic joint stock cooperative system's flexibility and necessity . Fifthly, made an objective analysis and evaluation on the status and operation of of rural credit cooperatives'property rights reform since 2003,based on the research of information about Shandong, Jiangsu, Shanghai and so on . Sixthly, based on foregoing related research and conclusions, put forward new ideas and forward-looking of RCC's property rights system's reform and organizational structure. Seventhly, summarized and referenced the experience of foreign rural credit cooperatives'property rights, and gave recommendations on reforming and constructing of RCC's property rights. Eighthly, carded main conclusions of this study, and pointed out questions which should be further deeply explored.The main point and conclusions of this study are as follows:Firstly, Rural economy decides rural finance, rural finance plays counterproductive role on rural economy. Rural credit cooperatives should use different types of property rights system and its organizational form, according to different situations of Chinese regional economy and social development status, which is subject to economic laws in rural areas and the actual situation of our country. But we should bear in mind that : at present, the joint-stock cooperative system has its unique system necessity and adaptability from the traditional planned economy to a market economy, which is suitable for our country's national conditions and applicated in majority of the RCC, be proved that had played an active and important role of promoting RCC's reform and development and promote modern agriculture and new rural construction.Secondly, reform of Rural credit cooperatives'property rights system should insist on principle of" adjust measures to local conditions ,and adjust measures to society conditions ", select suitable property rights system and organizational forms according to their own conditions. Through theoretical analysis, comparison and empirical research on the theoretical analysis, comparison and empirical research on system status, characteristics and operation effectiveness about cooperation, joint-stock cooperative system, property rights system (legal system at the county level, county and township secondary legal system, rural cooperative bank, rural commercial bank); drawed the following conclusions: cooperative system suitable for the RCC which existed in the present relatively backward economic and social development of areas; joint-stock cooperatives suitable for the middle eastern parts of rural credit cooperatives in our country, Stock suitable for the coastal economically developed areas of rural credit cooperatives. System implementated background and operational effectiveness of joint-stock cooperative system of property rights system with Chinese characteristics is particularly focus and difficulty of this study. Thirdly, Property rights reform of rural credit cooperatives has achieved remarkable achievement, but existed many problems also.Based on the field research, gather material, statistical summary, quantitative inspection and empirical study of the first round of the first national pilot reform provinces: Shandong, Jiangsu, Shanghai , drawed the following conclusions: on one aspect ,property rights reform of rural credit cooperatives has achieved undoubted achievement since 2003 totally;on the other hand, exist many problems and contradictions:"durance"in share structure installation ,"Substance Over Form"of corporate governance structure and its function , high depends on the police, big cost of loan quality improving , deficiencies in the management system, implement of the internal-risk control and stimulation-restraint mechanism and so on. Mainly relied on empirical study results of RCC's property rights'reform since 2003, made an objective analysis and evaluation on the status and operation of of rural credit cooperatives'property rights reform. These are emphases and innovations of this study.Fourthly, Made pre-researches on property rights reform tendency and developmental pattern of RCC ,based on the empirical study conclusion .(1) Exploration and development trends of RCC's property rights'reform .At preaset, Rural credit cooperatives should stable existing system of property rights and forms of organization, training "Internal Strength", make use of favorable opportunities, expand capital strength and enhance overall competitiveness . On long terms , individual areas'rural credit cooperatives can implement cooperative norms; but on the overall sense, joint-stock property rights system is the transitional property rights under the special circumstances of transition, and turned to be joint-stock rural financial organizations with diversified organization and clear operating characteristics. (2) Imagine on the whole organizational system of RCC. Proposed the "three-tier" system's organizational structure and their respective functions, trying to resolve the provincial association of provincial and grass-roots rural credit cooperatives properly, robust and perfect RCC's corporate governance structure and its function, so as to ensure sustainable and healthy development of rural credit cooperatives.(3) Innovation of supervision system of RCC's property rights reform. Put forward some imagination about property rights reform of rural credit cooperatives from internal and external supervision, which constituted innovation of this study. Fifthly, Policy recommendations on reform and Construction of RCC's property rights'reform . Summed up and learned from advanced experience and enlightenment of foreign rural cooperative financial system's property rights. Combined of empirical research and innovation of the aforementioned sections of the property rights system of rural credit cooperatives, gave recommendations on reform and Construction of RCC's property rights'reform:(1) Further improved the rural credit cooperatives'property rights and their corporate governance structure from norming share structure installation, unleashing function of"general meeting of shareholders, board of directors, board of supervisors and managers of the companies", stronging RCC's"Assembly of staff and worker's democratic management".(2) Improve and modify policy system of RCC's property rights'reform. Give assistance and ensurance for RCC in terms of discount government loan, linked interest rate, monetary policy and mechanism for oversight and management of the banking sector, according to Miscellaneous credit operations of RCC.(3)Establish and improve the organizational laws'system of rural credit cooperatives.