The Research On System Design Of Rural Mutual Funds Cooperative

As a big agricultural country, the situation of agriculture and rural economy development has great impact on China'economy. It began in rural area that China got rid of the planned economy model and gradully adopted market economy. In the modern market economy, the economy can not develop without financial support, as the same that, rural economy development also needs the support of rural finance. As the closest new-type rural financial institution to presant, Rural Mutual funds Cooperative palys a special role in rural economy development and has an unreplacable place in meetting the diverse financial needs of rural area and stimulating consumption, investment and coping with risks.From the perspective of the demand and supply of rural finance,this paper points out that imbalance exists between the current demand and supply of rural finance,in this case, the government spontaneously work s on domestic financial system innovation in rural areas-Rural Mutual funds Cooperative as a formal institutional arrangement, intending to compensate for the inadequacies of rural financial supply. But,due to some unreasonable aspects of system design, supply can not meet demand, so that it hasn't fundamentally changed the imbalanced situation. This paper combines empirical approach with normative analysis approach,adopting case analysis,to find out system design problems of Rural Mutual funds Cooperative, and draws on some successful experience in foreign cooperation finance to come up with some related strategies for the healthy development of Rural Mutual funds Cooperative.The paper firstly describes the research background and problems, meanings and reasons of the selected title, methods and ideas, research scope and concept, the framework and content of the paper and possible innovations and limitations, etc.;secondly, reviews the relevant literature, including the review and commentary of the status of overseas and domestic research and so on; thirdly, analyzes the finance demand and supply in rural area,including the characteristics of rural financial need and the imbalance between rural finance demand and institutional supply; the fourth part is to outline the overall development status of Rural Mutual funds Cooperative, including the quantity, distribution, characteristics, relevant policies, and describes the system as a formal financial arrangement; Fifth, use the system analysis approach, from the angle of design concept, establishment conditions, business management, risk control, and incentive instructures,analyzing current system design deficiencies of Rural Mutual funds Cooperative; sixth is to introduce some successful experience of cooperative finance in the U.S., Germany and Bangladesh and so on; finally summarizes the main conclusions of the paper and proposes some related recommendations to guide the sustainable development of Rural Mutual funds Cooperative.The paper argues,as a system innovation of rural financial reform, Rural Mutual funds Cooperative has its certainty to exist and develop. It's practically meaningful in meeting the needs of presant in producing and living. However, due to the complexity of the issue of presant,the Government and Rural Mutual Financial management philosophy, Rural Mutual funds Cooperative has many problems as a induced system arrangement,so that it has many system design problems in admitting, financing, risk control, supervision and management. In order to sustain heathy development, Rural Mutual funds Cooperative has to make full use of its "cooperation" advantages in system design, provide small amount of loans for presants' living and producing, and pay attention to work out a win-win cooperation strategy with other productive cooperation institution and formal financial institutions.