Financial Services In Rural Areas Of Jilin Province And Countermeasures

Rural finance survives in its reform, and develops in innovation. It has made tremendous contributions in rural economy in different historical periods. As the reform is required, variety of financial systems based on policy, commercial and cooperation have been forming a main structure of rural finance in China. In a long term, rural finance system in our country has to take responsibility to support agriculture industry despite of the non-performing capital and high risk. Moreover, the finance system can hardly run because of non-standard internal system of the inefficient management, strict external management environments and the original developmental defects in rural market. The main problems in the internal system contain the low quality of stuff's performance, over extensive management, lack of awareness of risk management, and risk evaluation. Defects of external business contain poverty of the rural areas, frequent disasters, policy obstacles and lack of credibility. Both of external and internal problems increase the difficulties in rural finance management which make the constructive adjustment hard to carry into execution.Jilin province is a major agricultural province. The agriculture output is a large proportion of the whole economy. The rural finance reform in Jilin has always been guided by the Chinese finance reform policy. But the rural credit cooperatives kept changing its affiliated organizations. The affiliation cannot be confirmed yet, and nobody knows the future of rural credit cooperatives. Aiming at the problems emerging in rural credit cooperatives in Jilin, comments and suggestions will be given.In this paper, the main contents are as follows:First, the author sums up the present national and international research in cooperative finance system, and illustrates the policy changes of corporative finance system in detail. It can be concluded that the international cooperative finance system has gone through different stages:Phase 1: The freedom stage of development in cooperative finance. This stage mainly focuses on: the definition of principles of cooperative finance, the confirmation of stuff's duty and right and the development of financial organizations operating. Phase 2: Country-intervened stage in credit cooperatives. This stage mainly focuses on those aspects as follows: the study of legislation of cooperative finance; the issues concerning about the expansion of organizations of cooperative finance, such as: the relation with the government, the complement and amendment for the construction of cooperative finance system, the establishment of association. Phase 3: the emphasis in cooperative finance system during a transitional period are: prevention of management risks, protection of capital in cooperative finance organization; the construction and the improvement of insurance system of cooperative finance, the research about feasible scale for cooperative finance enterprises, further economic study for cooperative finance; assembly, union, merge of cooperative finance; performance innovations and operation internationalization; cooperative finance organizations and the relationship with the other affiliated organizations.(2) Next part is concerning about the basic explanation of rural cooperative finance theory. First, the author defines the rural finance system and points that rural credit union, rural cooperative bank, agriculture development bank, agriculture bank, agriculture insurance system all belong to rural finance system. Second, the author discusses the origin and development of cooperative finance system and specifically describes the history of original credit cooperatives,and the characteristics of early credit cooperatives. Then, four aspects are presented to explain the definition of cooperative finance. At last, the author discusses the developmental process of credit cooperatives system; and describes its formation, development and changes in detail.(3) Compared with the rural cooperative finance system of developed countries in organization, the business operating, legislation, government funding, supervision institution, the brief analysis are given based on the characteristics of cooperative finance system in the three foreign countries. Their successful experience is a good pattern for our country in practice.(4)From the research of finance record in Jilin province, the author summarizes the history of rural finance serving in Jilin , then five phases can be divided diachronically based on the basic ideas in rural finance severing. Then the author sums up the main issues in reform of rural credit cooperatives of Jilin province. The obscurity of property and improper corporate organization are still the chief problems. As for the problems concerned, suggestions and strategies are presented. First, the question is that which one does the reform of property regulations should mainly depend on, shareholder-oriented or cooperation-oriented?The author suggests that the answer should depend on the specific situation, and bases concrete analysis on concrete problems. Secondly, properly deal with the inherent problems in history. Thirdly, set up the scientific concept of development; establish a long-term stable mechanism in capital environment.