View The Reform Path Of Rural Credit Cooperatives

With more than60years’development and growth, China’s Rural Cooperative Finance has been strengthening the support for agriculture, and playing an irreplaceable role in servicing rural economic and social development. Since1950, under the guidance of the government, Rural Credit Cooperatives have always been acting as the main force in terms of supporting rural areas, even the only legal and formal financial institutions in rural community. After several institutional changes, Rural Credit Cooperatives have not achieved the satisfactory result. Since2000, Rural Credit Cooperatives has ushered in a new round of reform. As the starting point of that round of reform, three Rural Credit Cooperatives in Zhangjiagang, Changshu and Jiangyin at the southern part of Jiangsu Province were converted into the Rural Commercial Banks, and an important institution was born with that round of reform-Provincial Rural Credit Cooperative Union. Due to the ineffectiveness of previous reforms of Rural Credit Cooperatives, the result of the new round of institutional reform becomes the focus of public attention.Firstly, a systematic review and summarize of the development of Rural Financial Theory, foreign researches on rural finance, domestic researches on reforms of Rural Credit Cooperatives and Provincial Rural Credit Cooperative Union was carried out. Then, a comprehensive comparative analysis of the advantages and disadvantages of the three representative reform modes of present China’s Rural Credit Cooperatives was conducted. Combined with the Guangdong provincial situation, a clear reform path of Guangdong’s Rural Credit Cooperatives was proposed. Finally, through an in-depth analysis of the achievements of Guangdong’s Rural Credit Cooperatives since the establishment of Provincial Rural Credit Cooperative Union and the problems with this union model, several targeted general ideas and specific suggestions of reforms of Guangdong’s Provincial Rural Credit Cooperative Union were put forward.