Research On Efficiency And Affecting Factors Of Rural Cooperative Financial Institutions In Northen Shaanxi

For a long time, as one of the formal financial institutions which our country financialregulatory department approved to set up, rural cooperative financial institutions play asignificant role in the rural economic development. They are important for farmers,ruralsmall, medium-sized enterprises and other kinds of rural economic main bodies to participatein the activities of rural credit funds, improve the rural financial system as well as toeffectively solve the Three rural issues. In recent years, with countries`focus on ruralfinance reform and the development of RCFs are also valued. Shaanxi province as one of thefirst batch of pilot provinces throughout the country, RCCS has achieved great progress tostrengthen the internal management and transform the mode of growth. But with theadjustment of rural financial market access policy since2006, some new types of financialorganizations rapidly grew up. The open of rural financial market not only aggravated thecompetitive risk of banking industry, but also broke the long-term monopoly of RCFs, RCFsis facing unprecedented challenges.Since2007,with the guide of the policy, more attention was drawn on the importance ofsustainable development of resource city. As resource-development-based and relatively richregion, North Shaanxi is one region of the earliest batch of property right pilot reform,theRCFs have developed rapidly in credit scale, the number of outlets and profitability. But dueto the high speed exploitation of local resource industries in recent years, there are shortagesof imperfect internal mechanism, poor risk control ability, low personnel quality, poorproducts service and innovation, and threats of shrink of the primary industry, improvement ofregulatory requirements and aggravation of marketing competition in RCFs of North Shaanxi.Based on the background, the thesis takes northern Shaanxi as the research object, makesfull use of the related theories, and analyzes their problems and threats from the scale,institutions and the number of personnel as well as the profitability, and makes clear businessdevelopment strategy through SWOT analysis and AHP; In addition, I used differenteconomic levels use DEA method to measure and analyze northern Shaanxi RCFs differentregions, different forms of property rights, in the mean while I take advantage of the Tobit model to do empirical analysis on the TE,PTE and SE’s. On this basis of these analyses, it isproposed to enhance the operational efficiency in Northern rural cooperative financial supportpolicies and proposals. According to the conclusion, I further deepen the reform of ruralproperty rights, the promotion of rural financial development and innovation, and improve theefficiency of RCFs to provide a scientific basis.The first chapter is an introduction to elaborate the background, the purpose andsignificance, the paper’s ideas and methods, the innovation and a literature review at home andabroad of the paper.The second chapter of the article defines the concepts of the connotation, characteristicsand operating efficiency, and reviews the related theories in this paper to be able to analyzeand research more accurately the operating efficiency while grasping the theoreticalfoundation.The third chapter of the article reviews the development of RCFs,and carries on thethorough analysis on operating situation of RCFs from scale, the number of institutions andpersonnel as well as the profitability, so its existing problems and threats are stated, and at lastthe operation strategy of RCFs through the SWOT analysis and AHP method is put forward.The fourth chapter mainly makes empirical analysis on operation efficiency and itsinfluencing factors of RCFs in North Shaanxi. Firstly we used the DEA method to measurethe operation efficiency of RCFs in North Shaanxi, then its overall efficiency value wasobtained, and efficiency value in the different property right forms and different areas werealso obtained, at the same time, we used Tobit model to make an empirical research oninfluence factors of TE,PTE and SE.The fifth chapter of this paper puts forward policy recommendations of increasing RCFsoperating efficiency from the inside and outside in North Shaanxi region. They are activelydeveloping innovative business, strengthening risk prevention abilities, improving staffquality, perfecting internal management system, accelerating the property right reform, settingup the moderate competition financial market, accelerating the construction of the rural creditenvironment, strengthening supervision, and promoting the transformation of agriculturaldevelopment, etc.