The Conflict Between The Target Of Profit And The Target Of Policy In Management Of Rural Credit Cooperatives: The Causations And Settlements

Rural credit cooperative is the dominant part of rural finance. Since the first one founded in 1950s, it has contributed much to the rural economic development.and played an important role in persistent and stable developing of national economy. However, in China, many rural credit cooperatives exist problems and difficulties broughted by institutional, historical or other factors which baffled their performance.These problems conclude into one point: Under the advancing commercialize reformation, there builds an unique multi-targets system in management of rural credit cooperatives in china. Unfortunately, the target of profit conflicts with the target of policy. And this conflict obstructs against the pursuance of two targets in adverse.This article begins with example analysis. Firstly it points out the phenomenon of the credit"non-agricultural"shifted from rural credit cooperatives is just a representation of the conflict between the target of profit and the target of policy in management of rural credit cooperatives; Than, the writer uses Markowitz's Portfolio Theory to seek the causation of the conflict; At last, the article presents theoretic settlements and specific means. The article consists of 6 chapters:Chapter 1 : The part of introduction mainly expatiates the purpose and significance of the essay, sums up the research methods, and the structure of the article.Chapter 2 : This part analyses the unique multi-targets system in management of rural credit cooperatives in china and the relationship between these targets. Points out the conflict between the target of profit and the target of policy in management which is represented by the the phenomenon of the credit"non-agricultural".Chapter 3 : The part finds the causation of the conflict based on Markowitz's Portfolio Theory. Under the"asymmetric condition of information", rural credit cooperatives prefer commercial loans who attached to the some liquidity risk but more profits rather than agricultural loans. That's the reason of the credit"non-agricultural".Chapter 4 : Firstly, based on Portfolio Theory, the part presents theoretic settlements to solve the problems risen from the conflict. Than considering the objections of relative institutions, it finds some specific means on the respect of risk and profits.Chapter 5 : The conclusion part. Points out the main conclusion of the article.The innovation of the article :1,It is the first time to begin with the unique multi-targets system in management of rural credit cooperatives and the relationship between these targets to analyses the the credit"non-agricultural"problem.2,It is the first time to analyses the conflict between the target of profit and the target of policy in management of rural credit cooperatives. Then finds some specific means on the respect of risk and profits.3,The research methods : the article uses case analysis and theory analysis research approach, and comparative research method, meanwhile we also get idea and methods from the frontier theory of information economics, ets.