Reform Of Rural Credit Cooperatives And Its Performance Evaluation

China's rural credit cooperatives (RCCs) has gone through a difficult and curving history of development since its foundation and is still in predicament. Problems like unreasonable property right, imperfect management system, obvious administrative intervention, lumbersome historical burden, have become its further development shackles. By the end of 2002, China's RCCs had been in a serious state of crisis in general with high rate of non-performing loans and high debt-equity ratio, as well as 10-year loss making.Thereupon, a new round reform began in June, 2003, which focused on solving the difficulty from property right and management system. Based on official data, the reform has achieved success, but reform always goes with dispute in some aspects, such as property right system, corporate governance structure, management system, historical burden, multi-goals, reform performance and the orientation of deepening reform. In fact, the new round reform is far from success as imagined.This dissertation holds that the new round reform is still led by government. The core problem which restricts its development is the conflict between the targets of profit and policy in operating. Therefore, some administrative intervention exists in setting of property right structure and management system. At- the same time, intervention in RCCs's management makes its daily decision deviate from its best choice and low efficiency in operating. Thus, it is very important to separate its profit target from policy and eliminate the administrative intervention.In order to verify the judgement, this dissertation establishes performance evaluation system of RCCs based on Zhejiang province reform. Then chooses Yinzhou Rural Cooperative Bank, Hangzhou united Bank and Rural Credit Cooperatives United of Pingyang to evaluate. The result indicates that RCCs could not operate without government subsidy, such as special central bank's notes and tax relief. The new round reform is far from success.Based on the conclusion, this dissertation makes some suggestion, such as deepening the management system reform, eliminating the government intervention, separating policy target from profit, allowing shares' appropriate concentration, retaining some subsidies policy if necessary, re-positioning policy finance institution to support agriculture, and so on.This dissertation is composed of 4 parts. Part 1, which consists of chapter 1 and 2, presents the background and framework, and the development of RCCs. Part 2 includes chapter 3 and 4, makes basic judgment according to dispute of the new round reform of RCCs. Part 3 involves chapter 5 and 6, which chooses Zhejiang province to do performance evaluation of the reform of RCCs. The last-part is the conclusion and policy suggestion.