To Build Effective Corporate Governance Prevent And Resolve Risk Of Rural Financial Institutions

The rural financial institutions of China (especially refer to rural credit cooperatives) have accumulated great financial risks due to the system and cumulative problems during its long time development. In recent years, our country has enhanced the study on corporate governance structure which was extended and applied into the rural financial institutions, regarding its perfection as an important prescription for preventing and resolving financial risks. However, to achieve effective corporate governance, there must be some support conditions, including not only the efforts the rural financial institutions make to improve their governance, but also perfect conditions of market economy . For lack of perfect conditions of market economy in current China, even if corporate governance structure in a normative meaning has been established, it is still difficult to realize the truly effective corporate governance. The authorities should envisage the fact that the government governance will exist for a considerably long time, establish systems and mechanisms to coordinate the self corporate governance with the government governance of the rural financial institutions, and try to create conditions for the realization of effective corporate governance. In the same time, the supervise institutions self-organization society people and other governance bodies should make efforts to improve the abilities of mutual governance. Only in this way, can the purpose of preventing and resolving financial risks be realized practically.