Economic Law Of The Rural Credit Cooperatives Reform Thinking

The rural credit cooperative is a kind of local financial organization which takes democratic member control with farmers as shareholders. It aims to provide financial service for the members with the farmer as service object and rural areas as service areas. During more than fifties years since the foundation of the rural credit cooperative, it has been engaged in the service for China's agriculture and rural economy, which is the main financial force for China's rural areas and the financial ties among thousands of families in the country as well as holds the important position in rural financial system and plays the unsubstitutable role in supporting agriculture, countryside and farmers. The reforms on rural credit cooperatives have been being carried out since 1980s and there has been a series of compulsory system changes in the area of reforms on rural credit cooperatives. However, due to various reasons, many historical problems in rural credit cooperatives remain for better solution. With the competition among banks become further fiercer and the realistic needs for reforms on rural credit cooperatives, the publication of G. F. No. [2003] 15 Pilot Project for Deepening the Reform on Rural Credit Cooperatives by State Council has opened up a new page for a new round of credit cooperatives reforms.Based on the new round of reforms on rural credit cooperatives in China starting from 2003 and viewing from Law of Economy, this paper makes analysis and discussion on the reforms of credit cooperatives in three parts. In Part One, it first reviews the historical development of China's rural credit cooperatives and analyzes the backgrounds and status quo of the new round reforms in the aspect of Law of Economy. In Part Two, it mainly comparatively analyzes the development and system pattern of rural cooperative financial organizations in developed countries. And then it focuses on tallying up the experience in the aspect of legal system and the arrangement of rights and obligations to provide reference for the perfection of China's reforms on rural credit cooperatives. Part Three is the mostimportant one in the paper. It analyzes the main existing problems and reasons in the new round reforms based on the relation of rights and obligation as well as responsibility system. By use of special triple pattern of interest regulation in Law of Economy, it starts with the interest conflicts existing in the reforms on credit cooperatives, further analyzes the reasons for the imbalance of interests in the process of reforms, and finally puts forward some suggestion on how to push forwards China's reforms on rural credit cooperatives. The writer thinks that China should make special Law of Cooperative Finance as soon as possible for Law of Commercial Banks has not been adaptable for the development of rural credit cooperatives; secondly, China should focus on the whole finance system, establish the legal basis to prevent the improper government intervention from the headstreams and guarantee the independent development of credit cooperatives; thirdly, it should position the "Community Bank" and ensure the interests of special groups such as middle and medium-sized shareholders; finally, it should give the full play to the middle rank in the credit cooperatives unions, prevent provincial credit cooperatives unions from administration which may lead to new "mixing-up of the functions of government and enterprise". Only in this way, can it be adaptable for the requirements by the development of modern finance industry and make China's reforms on rural credit cooperatives progress soundly and in an orderly way, thus it can bring rural credit cooperatives to play its applicable and important active role in China's finance industry and the whole national economic system.