Research On The Effect And Influential Factors Of Credit Cooperation In Rural Cooperative Financial Organizations

It is a serious problem of financial constraints in China's rural financial development,especially for farmers.In order to solve the problem,the central government has repeatedly put forward the reforms of the rural financial system and the development of diversified rural financial organizations.In recent years,the government has clearly proposed the development of rural cooperative finance,especially cooperative financial organizations based on the farmer cooperatives.China's farmer cooperatives have developed rapidly in recent years,and gradually become an important force for driving more and more farmers from decentralized production to specialized and the development of modern agriculture.The development of cooperative financial organizations based on the farmer cooperatives will be an important institutional innovation in rural finance,which can effectively alleviate the financing constraints of farmers.The credit cooperative is one type of cooperative,with the basic characteristics of cooperative.The long-term development experiences of foreign rural credit cooperative have also confirmed its great effects.Logically,it should have great demand for cooperative financial organizations in China's rural economy,and the government has also been trying to support the development of cooperative financial organizations from policy,however,the unsuccessful development history of rural cooperative finance shows it has a big gap between the expected and the results.Although the goals and position of rural cooperative financial organizations has been clear in current,but whether the organizations can achieve its goals in the business activities,and reflecting the characteristics credit cooperation?Specific summary,what are the business objectives of the organizations,and is it different from commercial financial organizations?Whether farmers have the wish to be a membership and what factors affect the wish?What are the effects of cooperation and whether it can achieve the expected results of cooperation?This paper focuses on the theoretical and empirical analysis of the objectives and achievements of rural cooperative financial organizations.The main research contents and conclusions are as follows:Content 1:Analysis of the nature and objectives of rural cooperative financial organizationsFirst,based on the theoretical analysis of the economic nature of the rural cooperative organizations,it can assume that the objective of the organization is to maximize the sum of the net gain on savings,net gains on loans and profits,but there is a conflict within the three parts and can be replaced by each other.Different organizations may focus on different parts of the objective and show different target types,such as may be a saver dominated or a borrower dominated type,it is also possible that the organization only seek to maximize profits,then the organization changed to be an enterprise.And then uses a model to illustrate the organizations with different target types have different variable values.Finally,carry out an empirical test about the above analysis and assumptions by using the survey data of the rural cooperative financial organizations in Wenzhou area,and the results confirm it.It is shown that the rural cooperative organizations have the characteristics of credit cooperation.First,the objectives of the organizations contain net gain on savings and loans,and maybe more emphasize the benefits of borrowers by comparing the net gain on saving and loans,this means the objective more like a borrower dominated type.Secondly the objectives are not only for the maximization of profit,and so the organizations are basically in the low-profit or break-even operating state.Content 2:Analysis on the relationship between the heterogeneity of member farmers and the participation behaviors and the development of the organizationsFarmers volunteer to participate in the organizations to become members.And members have different characteristics because of their own conditions,the members are composed of a few core members and most ordinary members,this part studies the influence of individual members' differences on the organizations and their own interests.Based on theoretical analysis,membership heterogeneity is beneficial to the development of the organizations under the constraints of real economic conditions.By using the amounts of membership funds and deposits as an indicator of participation degree for empirical analysis,the results show that the main factors that influence the degree of participation include the household income,the status of party member or village leader and the understanding and evaluation about the organization.Considering the impact of income,the total income,the agricultural income and the non-agricultural income all have a significant positive impact on the degree of participation,but the influence of non-agricultural income is greater than the agriculture income,and this shows the importance of the development of all industries in the rural economy in the developed areas.At the same time,farmers' understanding and evaluation also has an impact.In addition,the party member or village leader participates more significantly than ordinary farmers,which shows that they really play a leading role.Content 3:Analysis the credit cooperation effects of loansBased on the loan scale and coverage to test the effects of loans,the empirical analysis shows that most of the farmer members can obtain loans,and the members who do not have loans are mainly due to the lack of demand.But the amounts of loans are not entirely determined by the sizes of demand,which means a lower level of satisfaction for some members.At the same time,the amount of putting in has a certain impact on whether can get loan.And the statuses have no effect on getting a loan.The following conclusions and suggestions are drawn from the above contents:the rural cooperative financial organizations have the property of credit cooperation;it is an important innovation in establishing China's new-type rural credit cooperative system and has important practical significance.The loan ability of organizations is still limited and should further expand the scale and service capacity.As farmers' characteristics,understanding and evaluation about the organizations are the main factors that determine the degree of participation,farmers should be given more education of credit cooperation knowledge.Considering the organizations only has limited profitability,so that can promote their development by further exerting the advantages of cooperative finance,improving management and with more policies support.