Multi-level Rural Cooperative Financial System In China

After years of development, especially since 2003 new reform of rural credit cooperatives taking place, China's rural cooperative finance system has changed greatly. This round of reform of rural credit cooperatives shows two tendencies:decentralization and share-holding. Credit cooperatives managing authorization has been placed down to the provinces. Provinces established provincial branches. Many places formed rural commercial banks and rural cooperative Banks. At present, multi-level rural cooperative financial system has come to its initial shape. Since China's rural cooperative finance system still has many problems, there is a long journey ahead to establish a complete multi-level rural cooperative financial system and service to meet the farmer's financial demand.Generally, rural credit cooperative is thought to be the concrete reflection of cooperative finance in China. Through the development course of credit cooperatives, we understand cooperative finance system development history. Referring to the global experience of the construction in multi-level rural cooperative financial system, we established rural credit cooperatives provincial agency. Provincial agency transformed into rural commercial bank in economy developed regions resorting to the great effort made by government to build up rural financial platform, while private finance plays a large roll depending on its financial resource advantages. In the less-developed regions where agricultural take lead in GDP, the district commercial agency developed under the provincial agency. Regions of high-Urbanization developed the local rural commercial bank and rural cooperative banks. Because of rural credit cooperatives share-holding transformation and demonstration effect, we should reconstruct rural credit cooperative organization. Leading the non-governmental finance should be an option to it. Any level of economy should all emphasize on the private finance development, supporting private cooperative finance's growth, and guiding other forms of private finance to cooperative finance.In supervising the rural cooperative finance, we should guide non-governmental cooperation finance, cultivate cooperative finance innovation mechanism, protect cooperation financial institutions cooperation, and establish multi-level cooperation financial supervision system. Furthermore, while perfecting cooperation financial system, we should formulate legislation for cooperation finance as early as possible. Let law protect the system running.