The Study Of China’s Rural Credit Cooperatives Corporate Governance And Improvement

It is more than30years since the reform and opening up, the rural credit cooperatives have developed from small to large, and into the main force of rural finance, which have played an irreplaceable important role in solving the financing needs of the "three rural" and in developing the "three rural". However, due to the heavy historical burden, the imperfect system, and because the reform is not in place and because of other factors, the situation that capital adequacy is low, the amount of bad loans is huge, the proportion of non-performing loans is high and the level of profitability is low in the the rural credit cooperatives has not really improved. The reason was mainly due to the the rural credit cooperatives’imperfect corporate governance. Therefore, the State Council in2003issued the deepening of rural credit cooperatives reform pilot program, which started a new round of the rural credit cooperatives reform across the country gradually, and has made breakthrough progress.At present, the rural credit cooperatives in accordance with the gradual establishment of a modern financial enterprise system requirements, have established a unified legal community in counties (cities, districts), the provincial association, a corporate governance structure to members of Congress, the Council, the Supervisory Board and business management (three layer), which has reached the "shape" on corporate governance. But in the process of the actual operation, the owner of the long-term absence, the unclear duties of the "three-layer" boundary, the lack of effective incentive and restraint mechanisms, the insufficient information disclosure, administrative intervention in the internal control and other issues are still prevalent in the rural credit cooperatives, so there is still a long way for the reform of property rights is to go. Therefore, how to build a scientific corporate governance structure and how to further improve the corporate governance of rural credit cooperatives are particularly important.This paper attempts to analyze the main problems in the corporate governance of rural credit cooperatives and the crux of the problem and try to find a corporate governance model which is most suitable for the rural credit cooperatives by researching the history of the development of the rural credit cooperatives and the corporate governance reform process, by comparing the rural credit cooperatives corporate governance and corporate governance of the city commercial banks, and by comparing the rural credit cooperatives corporate governance and the new rural financial institutions-the contrast of the village bank corporate governance, Based on it, the paper proposes the idea to build good corporate governance of the the rural credit cooperatives and specific programs to guide the the rural credit cooperatives to solve practical problems in corporate governance and it further improves the corporate governance a build good corporate governance and promotes the reform and development of rural credit cooperatives according to the BIS in accordance with the Basel Committee "to strengthen the bank’s corporate governance guidelines. At the same time, through in-depth research, I hope it can put forward a set of actual program of the rural credit cooperatives suitable for Heze City within its jurisdiction, to further improve the corporate governance of the rural credit cooperatives, to promote the process of restructuring the rural credit cooperatives into rural cooperative banks and rural commercial banks within its jurisdiction and to further improve the effectiveness of the banking supervision department supervision and management of rural credit cooperatives to promote the long-term development of rural credit cooperatives.