Option For Models Of Reform Of Rural Credit Cooperative And Its Perfection In China

With the further reform of Rural Credit Cooperative in our country, it's necessary to make a thorough investigation into the reformed Rural Credit Cooperative. Experiences of success and lessons of failures can be found and offered to those who are conducting reform work. A practicable settlement will be sought for those are reforming.On the basis of review about theory on rural finance and with reference to the experience of foreign development in rural finance, two models in present reform—rural commercial bank and rural cooperative bank have been investigated, researched and analysed. Comparisons have also been made between Wujiang Rural Commercial Bank and Yinzhou Rural Cooperative Bank. With the help of the definition of cooperative finance and within the frame of practical economic surrounding, I analyzed the feasibility and necessity of the establishment of Rural Commercial Bank and Rural Cooperative Bank in developed areas.Take Wujiang Rural Commercial Bank and Yinzhou Rural Cooperative Bank as examples, the financial and management reports of the year 2005 are demonstrated. Comparisons are made between these two banks in economic financial environment, corporate governance, financial index, service development, risk management and corporate culture. Then the reason of option for the model has been studied and respective analysis and a whole comment have been made. Facts show no financial and economic environment. Investigations show the common problems existing in the reform of Rural Credit Cooperative are lack of theoretical basis, clear development strategy, precise market location and advanced management system. Preliminary suggestions are put forward according to these problems. Unpredicted issues will appear in the reform, but if special attention is paid to these steps such as management system, corporate governance and management achievements, a modern competitive commercial bank will be finally made. On the basis of these analyses, opinions on market location and development direction of these two reforming models have been put forward in order to provide some helpful inspiration for the reform work of Rural Credit Cooperative.