Studies On The Development Mechanism Of China’s New Organization Of Rural Mutual Funds

Finance is the core of the economy, the support of rural financial is the key of the development of rural economy. At present, rural financial system is not perfect in our country. The capital needs of many poor farmers and medium-sized and small enterprises are not being met. Until1997, State-owned commercial Banks almost fully withdraw from rural area, the rural credit cooperatives became the subject of rural finance. As the main formal financial institution, rural credit cooperatives are far away from cooperation in the reform of financial. Then, the rural mutual funds through mutual and cooperation to achieve the mutual benefits arise at the historic moment. It’s makes up the defect of the rural financial system and promotes the development of rural economy. But as the new type of rural financial institutions, it revealed a lot of problems in its pilot process. And how to construct the development mechanism of rural mutual funds, create favorable environmental conditions of mutual funds to promote the healthy and sustainable development of the rural mutual funds are particularly important.This paper started from the relevant theories of constructing development mechanism of rural mutual funds, and introduced the industrial organization theory, inclusive finance development theory, transaction cost theory, cooperative game theory and principal-agent theory. Then summarized the characteristic, the development achievements and existing problems of the new rural mutual funds, and find that the mutual funds’quantity increased, scale expanded, the way of development also had diversified since the pilot. But there are many problems in the development process. The rural mutual funds’development is not balanced between Regions, and it has low social identity, lack of funds, even being marginalized. Secondly, introduced the development way of the new rural mutual funds, find out the development impetus of the new rural mutual funds based on the motives analysis of related subjects (farmers, governments, regulators, other rural financial institutions), and analyzed the development environmental conditions of mutual funds. Then summed up the development experience of foreign rural cooperative financial organizations, we should from the dynamic mechanism, interest distribution mechanism, the organization operation mechanism and policy support mechanism to construct the development mechanism of the new rural mutual funds. Finally, in adhere to the guidance of the basic thought of the "government support, the elite leadership, farmers’ participation", put forward optimum development environment and development countermeasures to promote the new rural mutual funds rapid and healthy development.