Study On The Reform And Development Of Rural Credit Cooperatives In Hebei Province

Rural Credit Cooperatives have made a greater contribution to agricultural development and rural stability of our country, but also experienced a difficult and tortuous stage of development. Its further has been greatly restricted by some reasons, such as: the ownership structure is irrational, the management system is incomplete and, a heavy historical burden and other issues. In June 2003, the China government has launched a new round reformation of Rural Credit Cooperatives. The reformation was mainly started from the property rights system and management system, as to solve all problems which always trapped the development of Rural Credit Cooperatives. The scope of this paper decide to put the focus on the Rural Credit Cooperatives in Hebei Province, after the association of Rural Credit Cooperatives in Hebei Province was established, It takes some measures such as: gradually rationalize the trade management system, improve the property rights system, strengthening internal management, and all those measures significantly improve the strength and operating conditions. By the end of 2008, Rural Credit Cooperatives in Hebei Province's capital strength of financial institutions ranked first in the rural financial system and it become the largest financial institutions in efforts to support agriculture. At the same time, the process of Rural Credit Cooperatives in Hebei Province also turned to become exposed some problems, such as: the property rights are unclear, inadequate in corporate governance structure, a heavy historical burden, increased the accumulation of financial risks, the Rural Credit Cooperatives in Hebei Province now can not meet the financial needs of farmers and so on. Therefore, the systematic analysis of the problems of the reform and development in Rural Credit Cooperatives in Hebei Province has great theoretical value and practical significance in maintaining the sustainable development, and it is the needs of implement the Scientific Outlook on Development and building a socialist harmonious society.This paper is divided into six parts. The first part in this article is the Introduction, it primarily focuses on research background, domestic and international research background, research methods and data sources. The second part introduces the course of development of the Rural Credit Cooperatives. After a brief review of Rural Credit Cooperatives by the tortuous development process, the paper point out the achievements since the Rural Credit Cooperatives was establishment which including: rationalizing sector management system, reformation of property rights system, strengthen internal management and improving business conditions. But there does still exists the issues such as: weak foundation of reform, the coexistence of various types of risk and low quality workforce, the future reform and development of the situation is still not optimistic. The third part is divided into empirical analysis, which is the core of this article. In support of large amounts of data, the writer using Data Envelopment Analysis (DEA) model to calculate the efficiency of the reform of Rural Credit Cooperatives in Hebei Province between 1997 and 2008 year by year. The calculation shows that, the Total Value Efficiency (TE) has a certain pre-reform decline, which indicating the start of a new round of reformation is DEA invalid. Excluding the scale affection, the pure technical efficiency (PTE) levels increased, which indicating the property rights of the rural credit cooperative system, management system and other aspects of the reforms carried out by a certain enthusiasm. Scale efficiency (SE) values shows that the legacy of the historical burden of the problem is not resolved, Hebei Province, the reform of rural credit cooperatives failed to produce economies of scale. The subsequent use Probit model to analysis of influencing factors, and concluded that the model fit the overall result is very well, it basically consistent with the theoretical expectations. The forth part introduces the overview and basic characteristics of cooperative financial system in German, Japanese, American and French, and then analysis the five reform models proposed by the China Banking Regulatory Commission, for indicate the direction of deepening the reform of the Rural Credit Cooperatives in Hebei Province: joint-stock reform of commercial direction to the core of the reform of property rights system, through the introduction of strategic investors, at the county level rural commercial bank set up the Associated Press, Associated Press as a province of its parent company were holding a two-tier legal system. Factors that followed, computing Probit model shows that: the scale of assets, management, economic development and agricultural development on the reform of rural credit cooperatives in Hebei Province efficiency is remarkable, fitting the overall model works well, is consistent with the theoretical expectations. Part five give out the measures to reformation which includes: reform the ownership structure, the risk management, the rural financial environment, the micro-credit and staff quality. Finally, the paper made a summary.