Study Of Preliminary Reform Of Rural Credit Cooperatives In Shandong

The history of the Rural Credit Cooperatives can be seen as the measure of the development levels of China’s rural economy since the Republic of China. After the Great Cultural Revolution, there came an reform which was an extensive mass base and seemed like a pleasant trip. In historical perspective, the reform of The Rural Credit Cooperatives were naturally designed and implemented by the government from top to bottom. Whether this reform would transformed The Rural Credit Cooperatives into organizations at the grass-roots level of national bank or give it a certain degree of freedom and flexibility, there always were distinctive characteristics of mandatory institutional changes. Although it divided from Agricultural Bank since1996, The Rural Credit Cooperatives have been under the supervision of the Peoples Bank of China.While whose scale and volume becoming bigger and bigger, as an increasingly important role in urban and rural financial activities, the Rural Credit Cooperatives had to face the embarrassing problem:On one side, it is important to maintain the identity as a cooperation financial institution.On the other side, it is really hard to resist the temptation of enormous interests and benefits brought by the commercialization. This problem could be trace back to the reform after the Great Cultural Revolution. In1984, a reform of the Rural Credit Cooperatives named Restore3-property strengthened the mass organization, democratic management, and management flexibility, which kept improving farmers’lives on the premise of cooperative financial system, as well as avoiding going far on the commercial road and violating the original intention.Whether to maintain the credit cooperative system will be discussing for a long period in the future. It is undeniable that some limited reforms promoted new systemic changes. The Rural Credit Cooperatives have made considerable progress in the aspects of institutions, organization management, and financial systems. They also have abandoned official modes and the big-pot system, increased the service outlets, expanded the business autonomy, and improved the efficiency. The Rural Credit Cooperatives of Shandong are the strong performer in China’s rural financial institutions. This paper attempts to take a detailed analysis on the reform and self-construction of the Rural Credit Cooperatives of Shandong after a havoc. And by collecting and analyzing inspectional data, this paper tries to restore the development history of the Rural Credit Cooperatives of Shandong in the early years, and find out the progressed and results by analyzing the cause and measures of the reform.