A Study On Improvement Of The Rural Cooperative Finance Supervision Effectiveness

The economic base of the rural area's harmonious society is the rural production development and the peasant better-off lives; the core of the rural economic development is rural finance. Because of A planned economy before Reform and openness, the rural cooperative finance that is the most main part of the rural inform finance bear heavy historical burden, and its management system become rigid, so it is in difficult situation. It can't satisfy the demand for "agriculture, countryside and farmers" development not only and threatens rural financial operation system stability and rural sustainable development. Therefore under the background of the rural cooperative finance reformation deepening increasingly, The improvement of rural cooperation financial regulation effectiveness, that is beneficial to improving the competition of rural cooperation finance organizes and strengthening the development ability. It is beneficial to developing the rural finance, playing a marked effect in economy sufficiently, promoting the development of the rural economy, driving the harmonious development of the rural society.Firstly, the paper explains the relevant theories of finance supervision for example financial fragility, social public interest theory, and regulation cost analysis. On basis of theories and our country rural cooperation finance current situation, the paper analyses inherent vulnerability of the rural cooperation finance from different angles of the rural cooperative finance organize and its serving partner, expatiate the market failures of the rural cooperative finance from Natural monopoly, externalities and asymmetric information, discuss three arrangement benefits including micro, mid-scale and macro of the rural cooperative finance Supervision from the public goods viewpoint. Thereby that proves necessity and significance of our country rural cooperation finance supervision effectiveness.Secondly, the paper define the connotation of the rural cooperative finance supervision that base on the concept issued by experts and scholars, and expatiate the principle, premise and constraint condition of realizing the rural cooperation finance supervision effectiveness, on basis of "Core Principles for Effective Banking Supervision" issued by the Basel Committee on Banking Supervision and MFP criterion issued by the International Monetary Fund.Thirdly, under the frame of the financial reform, the paper analyses the current situation the rural cooperation finance supervision. According to the connotation of rural cooperation finance supervision effectiveness in foregoing words, the paper discuss the factor restricting the rural cooperative finance supervision effectiveness at present from different aspects of corporate governance and internal control system of supervisee, supervisor, market access and exit, supervision information.Lastly, Base on analyzing the current situation of the rural finance supervision, the paper perfect the rural finance supervision system frame. Then from our country rural finance supervision reality, the paper brings forward some concrete countermeasure to improve supervision effectiveness, including supervision objective, content, information and environment, supervisor and supervisee.