Research On The Rural Credit Cooperatives Property Rights' Reform

The rapid development and growth of the rural economy have raised the demand for the diversification of rural finance. The rural finance system should be diversified which based on the rural credit cooperatives (RCCs),sustained by state financial organizations and complemented by folk financial organizations and foreign financial organizations .The successful reform of RCCs is the key to establishing the rural financial system that is suit for market economy. In order to promote the development of RCCs as well as improve the income of farmers, the government has decided to further reform RCCs since June, 2003. In the reform of RCCs the reform of property rights'system is the core. The property rights'system of RCCs not only determines its governance, behavior and efficiency, but also has profound influence on the extent of which it realizes its functions. The pattern of property rights'system reform should be diversified according to different conditions including cooperatives, shares and the combination of cooperatives and shares. Based on the analysis of advantages and disadvantages of each pattern, this paper represents some suggestions and disposing plans.