China's Rural Credit Cooperatives Reform Research

In china, the farmers compose near54%of population, so that the development of agriculture and countryside has special significancy. The rural credit cooperatives act as important role in Chinese rural financial system. Their reform and development, especially in property system and governance, can promote rural economy development and reduce the cap between the city and country. This paper study the interior governance and outside governance of Chinese rural cooperative by looking back on the course of Chinese rural finance reformation and the ture-life of rural credit cooperative, between which the latter having dominant status, aiming to make some advice of the revolution of Chinese rural credit cooperatives about improving their governance system.The paper is organized as follows. It begins with an overall look at the common character and principal of the governance system, comparing and observing both interior governance and outside governance, about traditional credit cooperative. Then, it studies the difficulty of dealing the interior governance of rurual credit cooperatives when the rurual economic circumstance changing and credit cooperatives becoming bigger, spanding wider, growing more commercial. After admitting the rationality of attaching the government to the outside governace of the rural credit cooperative, this paper shows that the problem arises from the fact that the efficiency of governace decreases while the government becoming dominant. Following that, the paper reviews the revolution of Chinese rural credit cooperatives. By studying current character of Chinese rurual credit cooperatives’governace system, this paper reveals the inherent conflict of their interior governace and outside governace.