Research On The Property Right Of Rural Financial Institutions In China

The historical practice of China's rural economic system reform reveals the obvious lagging and various problems in the reform on property rights of rural financial institutions.In the seventy years of institutional change,a series of documents involving administrative norms based on “Provisional Regulations” and “Guiding Opinions” barely support the institutional system of property rights of China's rural financial institutions,and fail to shape effective property rights for the development of rural financial institutions.As a result,the function of rural financial institutions to support issues related with agriculture,farmer and rural area(hereinafter referred to as “three agricultural issues”)cannot be effectively realized,because rural financial institutions obviously have problems of inadequate service to three agricultural issues and micro & small-sized enterprises and chaotic governance for a long time.The root cause is the severe problem of institution supply restraint in the process of property right reform of rural financial institutions in China.On the one hand,a sound rural financial support institution for three agricultural issues urgently needs effective property rights of rural financial institutions as support;on the other hand,China's current institution about property rights of rural financial institutions is difficult to effectively respond to this demand in practice.The logical starting point of this research is constituted by the serious supply and demand contradiction between the institution supply of property rights of rural financial institutions in China and institution demand of sound property right institution of rural financial organizations in rural areas supporting three agricultural issues.Consequently,taking the real problem concerning property rights of rural financial institutions in China as an entry point,this paper attempts to systematically answer three major questions with the three-layer structure of “theoretical framework--empirical analysis--countermeasure research” as the research framework: What is the property rights of rural financial institutions? What are the problems and the crux of the property rights of rural financial institutions in China? And how to facilitate the reform and innovation of property rights of china's rural financial institutions?The paper contains seven chapters in addition to preamble,the specific contents are as follows:Chapter ? is “Theoretical Foundations for Property Rights of Rural Financial Institutions”.Along the path of “property rights--financial property rights--property rights of financial institutions--property rights of rural financial institutions”,on the basis of the review and summary of existing research,and the theoretical support of the theory of enterprise property rights and institutional finance introduced in the light of the reality of China's rural financial development,this chapter provides an interdisciplinary analytical framework for the study of property rights of rural financial institutions.The chapter indicates that the existing research lacks the comprehension on the nature of the property right of rural financial institutions,with the misunderstanding of the mechanical interpretation about property rights of rural financial institutions as “property rights of financial institutions in rural areas”.These misunderstandings have prevented the reform on the property rights of rural financial institutions in China from achieving the expected effect.Therefore,the question of what is the property rights of rural financial institutions remains to be re-examined.Chapter ? is the conceptual framework on the property rights of rural financial institutions.Following the paradigm of “function-structure”,this chapter deconstructs the property rights of rural financial institutions from both the macro and micro levels on the basis of redefining the concept and characteristics of the property rights of rural financial institutions.This chapter holds that the property rights of rural financial institutions is a general term of the rights enjoyed by the subject of property rights of rural financial institutions based on certain rural financial resources under the functional constraints of optimizing the allocation of rural financial resources and meeting the financial needs of agriculture and rural development.Compared with the property rights of ordinary enterprises or financial institutions,the property rights of rural financial institutions have obvious characteristics in function,subject,object and pattern.The property right of rural financial institutions refers to the form of ownership of rural financial institutions at the macro level,which is the legal form of the basic economic institution for the existence and development of rural financial institutions.Whereas,it refers to the specific rules of the operation of rural financial institutions at the micro level,reflecting the relationship of rights and obligations among the subjects of property rights of financial institutions.The overall structure of the property rights of rural financial institutions composed of these two levels determines the efficiency of rural financial institutions in supporting three agricultural issues.Chapter ? is the progress and logic of the evolution of property rights of financial institutions.Starting from the analysis on the evolutionary progress of the property rights of China's rural financial institutions,this chapter profoundly illustrates its internal and underlying logic on the basis of reviewing the evolution of property rights of rural financial institutions in China over the past seven decades.This chapter believes that this evolution has formed a triple logic: namely,a top-down mandatory institution change led by the government,an evolution progress led by ownership reform,and a trial-and-error reform under the absence of top-level design.Together,these three paths constitute the historical source of the alienation of property rights of rural financial institutions in China.Chapter ? is an explanation of the alienation of property rights of rural financial institutions.On the basis of reviewing and summarizing the current situation of the institution arrangement of rural financial institution's property rights,this chapter systematically analyzes the manifestation of the alienation of property rights of rural financial institutions in China at the macro and micro levels.This chapter holds that the alienation of property rights of rural financial institutions in China presents a structural monopoly of state-owned capital and the profitability of property rights targets at the macro level and certain forms as the nominal subject of property rights,insider control,outsider control,the reversal of property rights relationship,and the invalidity of restraint mechanism of property rights at the micro level.The serious deviation of the current property right of China's rural financial institutions from the established target of the institution supply directly impedes the realization of the function of financial institutions to support three agricultural issues in China.Chapter ? is the examination for the reasons of the alienation of property rights of rural financial institutions.Through analyzing and demonstrating the causes of the alienation of property rights of rural financial institutions in China from the perspective of institutional supply,this chapter holds that the alienation of property rights of rural financial institutions in China is caused by the absence,misplacement,and offside of institutional supply during the reform of rural financial property rights.The root reason lies in the accumulated suppression of institution supply over a long period of time resulted from the absence of legal system guarantee,accurate recognition of rural financial demand and unified goal of institution supply.Chapter ? is a reference to the historical experience of property rights of rural financial institutions,which systematically reviews and summarizes the practical experience of the property rights of rural financial institutions in foreign countries from a historical perspective.This chapter holds that the reform and innovation of property rights of rural financial institutions in China is supposed to pay much emphasis on the fundamental role of legal system in the development of property rights of rural financial institutions,based on the summary of experience in China and the adequate reference of the historical experience from foreign state.In the course of institution design,the adherence to the dominant position of property rights of cooperative rural financial institutions,the guarantee of the state's supportive function as the main subject of property rights in the development of rural financial institutions,and the emphasis on the connection of property rights in the rural financial institution system should be considered.Chapter ? thoroughly discussed how to facilitate the reform and innovation of property rights of rural financial institutions in China.Specifically,promoting structural reform and institutional innovation of property rights of rural financial institutions from the supply-side is the key to resolve the alienation of property rights of rural financial institutions in China.The structural reform of property rights of rural financial institutions from the supply-side should establish the basic principles of optimal allocation,support for three agricultural issues,and independence in accordance with the actual needs of rural finance in China,on adherence to the basic path of legalization and the reform direction of cooperative system.It is an inevitable requirement for rural financial institutions to improve the property right of rural financial institutions to realize the function of the support for three agricultural issues,starting from the institution correction of the existing property rights alienation and the legal reconstruction of cooperative system.This paper argues that the correction of alienation problem of the existing property rights depend on the construction of the property rights subject institution of rural financial institutions dominated by agricultural management entities,the establishment of orderly withdrawal institution on the state-owned equity from rural financial institutions,the improvement of governance institution of rural financial institutions,and the promotion of management system reform on Provincial Rural Credit Cooperatives from the perspective of law.Whereas,the legal reconstruction of the cooperative system shall clearly stipulate the purpose of the property rights,legal standing,competency of the property rights subject,the empowerment of property rights,the rights and obligations of the property rights subject and the democratic management mechanism of the rural financial institutions in the cooperation system from the perspective of law.