A Tentative Probe Into Corporate Governance Of Rural Cooperative Bank

Rural cooperative bank, as a rural financial institution of new-type shareholding cooperative system, is one of the reform models of rural credit cooperation. It is of the essence whether the corporate governance of rural cooperative bank can accord with the characteristics of shareholding cooperative bank as well as the basic laws of corporate governance of modern enterprise. However, at the present time, China hasn't cultivated a matured theoretic framework in the field of corporate governance of rural cooperative bank and still remains at the stage of exploration in practice.This paper, using the relevant knowledge and theories of economics, management, jurisprudence and philosophy, and with the relationship between cooperative system and shareholding system as its breakthrough, makes a close analysis of the corporate governance of YinZhou Rural Cooperative Bank in Ningbo, the first rural cooperative bank in China; sums up its innovations in the bank's corporate governance; and finally suggests some improvements for the problems existing in the governance. Meanwhile, this paper, by analyzing the successes of cooperative banks overseas, In addition, it makes comparative analysis of essential characteristics of cooperative system and shareholding system, cooperative bank and commercial bank, In the end, from particularity to universality, it brings up some tentative ideas of corporate governance mode of rural cooperative bank in China.Firstly, this paper introduces several main modes of corporate governance of cooperative banks overseas, and elaborates its evolution in terms of mutual cooperative character, shareholding structure and decision-making management. It also introduces the corporate governance characteristic of Rabobank, the world's largest cooperative bank, Meanwhile, it discusses what enlightenment rural cooperative bank in China can gain from the evolution of corporate governance of cooperative banks overseas and expresses views on how to perfect corporate governance environment of rural cooperative bank in China.Secondly, the paper lays emphasis on the cases of Yinzhou rural cooperative bank related to the corporate governance. Reviewing its reform history, the paper probes into how the entrepreneurs of Yinzhou Bank, taking into account the local economic environment and the minimal cost in transformation of system, made a bold choice of shareholding cooperative system as the bank's property right organization form. It further makes detailed analysis of the specific contents of the bank's corporate governance from the aspects of its shareholding structure, its "four boards and one level" which is composed of the board of representatives of shareholders, the board of directors, the supervisory board, the personnel representative board and the senior management. Based on the analysis, this paper summarizes its innovations in the bank's corporate governance as follows: to take cooperative system as its basis and to absorb the quintessence of shareholding system. On the other hand, the paper, from a dialectical angle, points out the problems existing in the bank's corporate governance and puts forward proposals for improvement.Lastly, this paper sums up the universal and exploratory influence of cases of Yinzhou rural cooperative bank on corporate governance of rural cooperative bank in China. In addition, it makes comparative analysis of essential characteristics of cooperative system and shareholding system, cooperative bank and commercial bank, based on which it puts forward a suggestion about how rural cooperative bank can draw on the mature mode of corporate governance of commercial bank. At last, this paper, from the aspects of inner corporate governance and corporate governance environment, raises tentative ideas of corporate governance mode of rural cooperative bank in China.