Studies On The Development Issue Of Rural Cooperative Financial Institutions

The strong financial support plays an essential part in sustainable development of rural economy, the increase of farmers' income, rural industrial structure adjustment and new socialist countryside construction. The development of rural finance in China has been included in the report delivered at the 17th National Congress of the Communist Party of China, which plays an important part in balancing urban and rural development and promoting new socialist countryside construction. The traditional formal rural finance developing from progressive reform tends to weaken its support for agriculture, countryside and farmers in recent years. The problem of financing for farmers and small and medium rural enterprises is grave. Because China's financial development course hasn't gone far, it is relatively late when the Chinese scholars begun to carry out researches on rural finance. The views on the connotation of rural finance vary. So do the theoretical frameworks of corresponding analysis. Most of the existing researches on rural finance are just limited to the traditional formal financial institutions in rural areas in a general sense, while very few researches have been conducted on rural cooperative financial institutions in a particular sense, which are really closely related to "issues concerning agriculture, countryside and farmers". In order to meet the multi-level needs of agriculture, rural areas and farmers and improve the original traditional rural financial system, financial innovation has been made and rural cooperative financial institutions developed. The paper aims at exploring the role that rural cooperative financial institutions play in solving the "issues concerning agriculture, countryside and farmers" so as to bring the financing function of rural financial market into play and allocate funds for vast rural areas to solve the capital starvation in rural areas.Because the rural areas in China has been in a state of financial repression for long, it is the most important issue of new socialist countryside construction regarding how to reform the existing rural financial system and to achieve the purpose of finance serving economy. Cooperative finance has experienced the development of more than 160 years in the world and still been proved to be an effective financial form for "vulnerable groups" to get out of financing dilemma. The practice of cooperative financial institutions has arisen in China. This paper aims at making some new exploration for theoretical discussion and empirical research on the development of rural cooperative financial institutions by adopting some economic theories as a research tool, taking rural cooperative financial institutions as the study object and making a systematic framework analysis on the basis of the actual situation of the current economic development in rural areas of China. The paper is organized in three-step, consisting seven parts. The first part is introduction, in which to analyze the study background of rural cooperative financial institutions under new situations and circumstances, and to discuss the purpose and significance of the study from the perspectives of the current supply and demand of rural finance and the theories and practices of the demand of new countryside construction for capital, and to make an introduction of the development of cooperative finance at home and abroad, the contents and methods of the paper as well as main innovative points and deficiencies. The second part introduces the rural cooperative financial organization related theory. From the common theory of cooperative economic and financial development and the definition of the cooperative finance, according to the essential features of cooperative finance and the evolution of cooperative finance, to define the concept of rural cooperative finance, and classifying appear at present our country rural cooperative finance; The third part analyzes the evolution of the rural cooperative finance and rural finance supply and demand present situation. From China's rural financial supply and demand characteristics of the status quo and existing problems of analysis, concluded that the contradiction between supply and demand of the reality is that the root cause of our country rural cooperative financial development and the inevitable result of the rural cooperative finance, the paper analyzes the current situation of our country rural cooperative financial organizations. The problem in the development of rural cooperative financial organizations and its reasons are analyzed in detailed; The fourth part, further from the angle of the efficiency of rural cooperative finance, empirical analysis is made of the relationship between the development of rural cooperative financial institutions and farmers'income growth to indicate that the development scale, efficiency, and financial structure of rural cooperative financial institutions contribute to increasing the income of farmers. The fifth part, the paper analyzes the difficulties in current development of China's rural financial organizati on. The sixth part studied the rural cooperative financial organizations in developed countries, put forward the corresponding reference. The last part is the conclusion and policy suggetion. Policy Suggestions are put forward from seven aspects:1, to strengthen the construction of supporting system, optimize the environment of the rural financial operation,2, guide the rural cooperative financial institutions lending interest rates moderate,3, increase the supply system of rural cooperative financial organization,4, take measures to promote the healthy development of the rural cooperative financial,5, and build a comprehensive, effective and scientific and standardized system of rural financial supervision,6, increase policy support,7, Innovating financial service instruments.