Research On The Performance Of Prospective New-Type Rural Financial Institutions And The Influencing Factors

Inadequate supply of rural finance gave birth to a new type of rural financial institutions."Prospective" new-type rural financial institution,as the "ready" body of new-type rural financial institution, is different from the new-type rural financial institutions which is under tthe CBRC’s supervision in nature, business, regulatory, and preferential policies.In the long run, it’s an inevitable choice that "prospective" new-type rural financial institution will be changed into the new rural financial institution in the end.What conditions are required for the prospective new-type rural financial institutions before they can pick the "prospective" as new-type rural financial institutions, this is an urgent need to seriously study and properly solved.Farmers’credit union funds is the main form of the prospective new-type rural financial institutions in Jiangsu Province.This survey based on Nanjing and Taizhou, focus on the operating performance of the farmers’ credit union funds in the two cities and influencing factors.Based on this analysis,prospective new-type rural financial institutions will be changed into the new-type rural financial institutions when comply with specific conditions.In order to promote new-type rural financial institutions, positive policy support should be given.In the past,the studies on the new rural financial institutions and farmers’ mutual funds organization focused primarily on system performance, and other macro-level analysis of property rights, or the performance of individual organizations.This paper aimed at the prospective new-type rural financial institutions’ operating performance and affecting factors.Previous studies have rarely mentioned the farmers’ organizations for mutual funds on behalf of the prospective new-type rural financial institutions.This paper aimed at empirical testing of the prospective new-type rural financial institutions’ impact to production and life of the members..Previous studies were lack of micro-level empirical test and explore for prospective new-type rural financial institutions,in order to build the future development of the funds. This innovative proposal a concept as "prospective new-type rural financial institutions", which is distinguish between new-type rural financial institutions and private financial institutions,in order to analyse its future development path.The main structure and content of the article is as follows:The first part focuses on the background paper topics, issues and research significance; research objectives, content of research ideas,technology routes and lack of innovation.The second part reviews the main theoretical basis relevant to the study, and research results in recent years on new-type rural financial institutions and prospective new-type rural financial institutions.The third part researches the operating status of the prospective new-type rural financial institution in Nanjing and Taizhou,mainly from the initiating mechanism, operation mechanism and management mechanism, and analyse in region of the sample.The fourth part researches the factors affecting the operating performance.First,using the DEA method to measure the operating efficiency of the sample, and then analyzed by using the correlation coefficient affect farmers’ credit union’s operating efficiency. The results show that the farmers’credit union which the scale is between3,000million to5000million range, can run the most efficienly; the factors that influence the farmers’ credit union’s operating efficiency can be divided into internal and external aspects.Part V studies of factors affecting farmers’ attitude to the farmers’ credit union’s operating performance.First, to research the members’ satisfaction and performance factors, further analysis on the farmers’ credit union’s loans for the coverage of farmers’ income levels.The results show that the farmers’ credit union’s members had overall positive attitude for the basic operation;the farmers’ credit union’s loans for community members have a positive role in promoting agriculture and tertiary industries;the farmers’ credit union form a complementary relationship with traditional formal financial institutions.Part VI summarizes the conclusions of this study, and put forward the corresponding path to the future development of the farmers’ credit union funds,as the main form of prospective new-type rural financial institutions:prospective new-type rural financial institutions should be putted in a clear position, and maintain an appropriate scaledevelopment; regulation by local government should meet the prospective new-type rural financial institutions’ operation, the CBRC can consider take off "prospective" to the new rural financial institutions under the supervision of the CBRC; strengthen the legal support of targeting of prospective new-type rural financial institutions,permit local government to support and regulate the prospective new-type rural financial institutionsits to be more mature,then can be run by the CBRC’s regulatory model of development.