Guiyang Economic Rationality Research Across The County, Rural Credit Cooperatives To Form A Bank

At present the rural cooperative financial organizations are the main forces ofproviding financial services for rural in our country. Before 2003 years, ruralcooperative financial bases on the principle of cooperative system which was the wayof county and town separate established legal person. But it had some seriousproblems, such as lacked economies of scale and scope, business was single, thequality of assets on the low side, heavy potential risks, and widespread insolvency, etc.After carried out pilot reform, the rural cooperative financial institutions had madegreat strides in the powerful policy support of central and local governments. By 2010,we have made up 25 Provincial Credit Cooperatives, 2126 Joint-stock System’s PrefecturalCredit Cooperatives, 201 Rural Cooperative Banks, 46 Rural Commercial Banks, and a fewrural credit cooperatives of townships’legal person still keep cooperative system. In recentyears, the market share of rural cooperative financial institutions increased rapidly,the ability of servicing agriculture , rural and farmers improved, also the resourcesallocation efficiency of the market. Most of the history burdens had been dissolved, thequality of the assets had fundamental improved, and showed good momentum ofdevelopment, made cooperatives really become the market entity of“independentoperation, self-discipline and self development, at their own risk”. However, the newproblems appear again. On one hand, some of the big city rims are actively promotingrural cooperative financial institutions across the county to set up large ruralcommercial banks; on the other hand, they worry about the rural cooperative financialinstitutions too big will be formed monopoly, produces stress to rural financialmarket’s competition and forms negative influence to market performance. the centralbank and other relevant aspects also worry that the rural financial institutions indevelopment well deviate from the service purposes of "agriculture, countryside andfarmers", and turn to cities aggravate unordered competition.This article on the basis of summarizing and carding the theory research resultsat home and abroad, we realize that it well increase efficiency of economies of scaleand scope and well be contribute to disperse risks through expanding the scale andscope. It makes for overcoming the business limitations and insider control ofcooperation system, also can improve the quality of the staff and the service levelthrough the establishment of a modern joint-stock enterprise system. But bases on ourcountry’s current development level, it’s mainly suitable for urban economic circleabove two counties to merger. The general agricultural counties keep prefectural legal person maybe a good choice.This article used relevant theories for Guiyang circle to empirical research, andanalyzed the regional basic economic conditions, the relevance of regional economicdevelopment and financial development, the property organization form of eacharea’s(county’s) rural cooperative financial and the current situation of busniess. Wecan get the conclusion that in order to further promote the reformation of propertyrights system of rural credit cooperatives, perfect the corporate governance structure,improve the core competitive power and risk resistibility of rural cooperativesfinancial insitutions in Guiyang city rim, give full play to the advantages of industryoverall, also in order to provide more high-quality financial services for "agriculture,countryside and farmers", and urge urban and rural to promote each other, createbetter conditions for rural development in Guiyang economic rim, we should boostthe county legal persons of rural credit cooperatives to achieve trans-regionaloperation and form rural commercial bank in these areas actively. This paper putsforward some advice consist of further organizing management system, tationalizingthe reationship of administration, sounding corporate governance structure, improvingthe internal control system and the business process, strengthening support ofgovernment,etc.