A Study On Rural Credit Cooperative Reform In China

The rural credit cooperative that plays an important role in China rural economy is the main financial institution in rural areas. With government's more attention paid on the "Agriculture and rural farmers" issue, and the deeper reform of the financial system in rural areas, the focus is on the transformation of the traditional development model of the rural credit cooperative, how to service "agriculture and rural farmers" better and to achieve long-term development. This paper aims to explore the transformation of the rural credit cooperative into the commercial bank.This paper firstly reviewed the development history of China's rural credit cooperatives, comparing with several models of transforming the rural credit cooperative. And then combined with main issues arising from reforms in recent years, this paper proposed the best model for the development of the rural credit cooperative, which can be transformed into the rural commercial bank. Finally, taking the transformation of the rural credit cooperative in city A into the rural commercial bank as an example, this paper comprehensively discussed several issues in the transforming process, and recommended a solution.This paper discussed the necessity and feasibility of transforming the rural credit cooperative into the rural commercial bank, and proposed a solution on restructuring the assets involved in the transforming process, improving the equity structure, and on other major issues such as corporate governance, personnel resettlement and so on. Moreover, this paper made recommendations on implementing the transformation programs, and on avoiding the risks after transforming the rural credit cooperative into the ruralcommercial bank. The innovation spot in this paper is applying the theories of modern company and the state enterprise reform to the Rural credit cooperative remanufacture, which has explored a new path for Rural credit cooperative's sustainable development.