The Innovation Of Rural Credit Union In Underdeveloped Western Area

According to the vast territory of China, the development of rural economy is unbalanced. There are a lot of differences between rural credit unions in different area in assets and debts, services, management and operation. So the developmental mode in developed area is different from underdeveloped area. The new innovation which started from 2003 can be distinguished from the former innovation obviously in China, because the new innovation of rural credit union encourage different area choose the proper reformational mode which fits the local economy well. Because of this policy, numbers of areas have tried to search after the appropriate way to reform rural credit union and many of them made effect. And a lot of scholars agree that the innovation of rural credit union in underdeveloped area is harder and more arduous than the developed area because of historical, geographical, political and other factors. So this paper focuses on the innovation of rural credit union, and takes a county of Sichuan province in West China as example to analyze the transformation after the reformation. This county is named A county. Because the major industry of this county is agriculture, so this paper may contributes to the healthy development of rural credit union. This paper includes two parts in the main, first chapter and second chapter analyze the rural credit union innovation macroscopically, and the other four chapters, concentrates on the example county, analyzes this county by empirical approach.The first chapter explains the motivation of selecting the innovation of rural credit union as the topic of this paper. Then summarizes the previous papers about this topic and chooses the method for researching based on the summary.The second chapter introduces the background of rural credit union's development in its more than 50 years and finds problems. The analysis shows that new innovation is necessary and only the new innovation in contents and methods can solve such problems.Since the third chapter, this paper focuses on the A county. This chapter describes the financial environment of A county and general situation of its rural credit union. Dues to the importance of rural credit union in local financial institutions, the result of its innovation relates to the development of A county's economy.The forth chapter introduces three modes of innovation that A county's rural credit union can choose and demonstrates that choosing unitive juridical person structure is proper for A county. Otherwise, this chapter introduces the aim, principle and measures of its innovation.The fifth chapter uses Topsis(Technique for Order Preference by Similarity to Ideal Solution) to evaluate the performance of A county's rural credit union from 2001 to 2006。The sixth chapter analyzes the empirical result. The result shows that the performance after the innovation is worse than before. However, this paper finds out that innovation is effective dues to the improvement of several important indexes. So the decline of performance is the cost of innovation. The rural credit union will have a bright outlook.This paper has such contributions as:1. Demonstrates that unitive juridical person structure fits the situation of A county theoretically by analyzes some indexes.2. Uses Topsis and SDI to evaluate the performance of A county's rural credit union from 2001 to 2006 and Uses relative analysis to select indexes for Topsis.