Research On Supervision Legal Issues Of China’s Rural Credit Cooperatives

Rural finance takes an extremely important part in China’s financial system. As thefoundation of the whole rural financial system, rural credit cooperative plays a fundamentalrole in the steady development of China’s rural economy, which can not be ignored. It hasshown a robust development momentum after experiencing several reforms during the60years since its establishment. However, the current supervisory regime has been set as “statemacro-control and strengthen supervision, provincial governments to manage and assignresponsibilities, credit unions for self-restraint and assumption of risk”, but cases occur oftenin practice still due to the inadequate supervision.Therefore, it is necessary to take an in-depth study of legal issues that arise in thesupervision of rural credit cooperatives, and give feasible suggestions to improve thesupervisory regime in the context of Building the New Socialist Countryside and deepeningthe reform of rural credit cooperatives, in order that rural credit cooperatives can play the duerole better for solution to the problem of the Three Rural, and provide a strong guarantee forfurther development of rural economy, and dedicate a greater force for the Construction of aNew Socialist Countryside.The thesis is composed of four parts excluding the introduction and conclusion parts.Chapter one is the presentation of cases and issues involved. The author presents seriescases of rural credit cooperatives in Jiangxi province firstly, and reveals the problem is thatthere are deficiencies of the current internal control mechanism in the supervision of ruralcredit cooperatives by a deep-rooted and multi-angle analysis.Chapter two reviews the supervisory situation of China’s rural credit cooperatives. Theauthor combs the current regulatory laws and regulations of rural credit cooperatives firstly,and by observing and studying of existing regulatory rules, sums up the existing supervisoryregime is a kind of trinity supervisory regime that People’s Bank of China and the ChinaBanking Regulatory Commission carry out supervision on rural credit cooperatives,provincial governments or Provincial Credit Cooperatives are responsible for the management,and rural credit cooperatives for self-restraint.Chapter three is a comparative analysis of the supervisory regime of extraterritorial ruralcredit cooperatives. The author observes and studies the rural cooperative financial supervisory systems in the United States, Germany, France and Japan, and draws inspirationby comparing and analyzing rural cooperative financial supervisory systems of thesecountries, so as to provide necessary reference for studying how to improve the supervisorysystem of rural credit cooperatives of China.Chapter four is about legal consideration of how to improve the supervisory system ofChina’s rural credit cooperatives. The author proposes a general supervision idea “stringentregulation, cautious penalty, and founds in support” by learning from the successfulexperience of the extra-territorial rural cooperative financial supervisory firstly, and thenelaborates specific measures and recommendations to improve the supervisory system ofChina’s rural credit cooperatives with considering the rural credit cooperatives supervisorypractices of China.