Research On Performance And Improvement Of Rural Financial Organizations In Zouping

The rural financial organizations are the important subjects which providefinancial products and service, allocate the resource and manage risks in ruralfinancial market. They work well or not which directly affects the function and effectof servicing the rural areas, agriculture, and farmers. Generally, the satisfaction of therural financial products and services to supply the needs in financial market can beused as a standard to determine the performance of rural financial organizations.In recent years, the rural industrial structure of Zouping County has changedgreatly, the private economy has been developing rapidly and the pace of urbanizationis accelerating. At the same time, the demands in finance have been changing withthese. Not only the scale of demand is gradually expanding, but also the type andrequirement are richer and more specific.In the view of the subjects of the supply, the rural financial organization systemof Zouping County is relatively complete, which include the formal financial servicesystem in which commercial finance, cooperative finance, policy-oriented financework together and the non-governmental non-formal organizations including usury,family and friends borrowing, private banks and so on. But if we analyze the problemfrom the perspective of the scale of financial supply, type and the process of service,we can easily find that the current financial organization system is difficult toeffectively meet the diversification and the differences of the rural market. There is ahuge gap in quantity and structure between the demand and supply of rural financialmarket, which reflects the performance of existing rural financial organizations inZouping County is not optimistic.The low performance is mainly due to the defects in function of financial organizations. Mainly as the inefficiency of state-owned commercial bank, lack ofrural policy bank functioning, the commercial banks in rural areas are difficult tomeet the needs of the economy in rural areas. The postal savings mortgage limits,which results in an outflow of capital in rural areas. The self-development of newfinancial agencies is not enough and the non-formal finance is difficult to sustainabledevelopment and so on.Deficiencies in function of the financial organizations reduce the operatingefficiency of the rural financial market in Zouping County, which must be adjustedand optimized. We compare “the structure method” and “the function method” andbelieve that “the function method” is better to reform the financial system. That is,taking the financial needs as a starting point, we adjust, optimize and reconstruct theexisting rural financial organization system of Zouping County. The ultimate goal ofreform is to improve the rural financial mechanism of competition and build thesustainable and ecological financial system in which every financial institute canperform their duties and compete in order. In this process, we should follow theprinciples of adjusting to the economic situation, in support and proper regulation ofgovernment, sustainable development. Basing on the new situation of rural economicdevelopment in Zouping, we relocate the function of all kinds of financialinstitutions.In the process of implementing the reform program，we point out the highlyoperative measures form the point of Zouping county government, the bankfinancial institutions, non-bank financial institutions and the non-formal financialinstitutions. That is, through constructing the platform among the government,enterprises and banks in order to form a sustainable development of ruraleco-financial environment in which the government could support the financialorganizations, the financial organizations could serve the local economy and theformal financial institutions and the non-formal financial institutions couldcomplement each other in function.