Mode Selection Reform Provincial Association Analysis

China is a big agricultural country. The rural finance is facing the impact whichis brought by the economic globalization and the market economy system. Ruralcredit cooperatives(RCC)，which is the rural financial backbone，has to be reformeddeeply when it is facing with the opportunities and the challenges. Provincialassociation of RCC as the product in the new period of the reformation of RCC is aparadox, which is also facing further reform. Under the competition from manyaspects (market-oriented interest rates, the establishment of private Banks and villageBanks, and the Internet finance booming), it is important to research the pros andcons of provincial association mode. The significance of theoretical and practical isvery important. It can further improve the management system of rural creditcooperatives in our country and promote the healthy development of the rural creditcooperatives in order to achieve the purpose of service to agriculture, rural areas andfarmers. This article obtains from the analysis of the pros and cons of provincialassociation patterns, explores the pattern choice of reform of provincial association inthe future on this basis. Compares the four patterns of related indicators from in-depthanalysis and then draws the following conclusions. The optimal goal of the reform ofprovincial association mode is a rural commercial bank. Rural commercial Banksshow the overall advantages beyond the other three modes from various aspects. Thisarticle aims to explore the best development model of provincial association, forpromoting the development of the rural financial in the future. Hope to provide myown opinion from the exploration for the development of the provincial creditcooperatives.This article is divided into five chapters. The first chapter reviews thebackground of the problem in the first place. Illustrates the current situation of ruralfinance in China. Provincial association as a product of the deepening reform of RCChas a lot of defects. The development direction of it in the future is a problem worthy of thinking deeply. Second shows that the purpose of this study is to explore the likelydirection of future development for provincial association.Research value is tooptimize the reform of the rural credit cooperatives and the development of ruraleconomy. Finally presents the research method and technical route in this chapter.The second chapter carries on the commentary to the related literature. Firstly,introduces the five reform courses of RCC in our country. After2003, it has carriedout the more profound reform and adopted this new pattern to experiment in eightprovinces. In2003, the provincial association is set up after the deepening reform ofrural credit cooperatives for the first time in eight provinces. Second, emphaticallyanalyzes the provincial association management system and evaluates the practicaleffect of provincial association. Analyzes inner defects of provincial association and itneeds necessity reform of it. Finally, induces fellow writer’s different opinions to thedevelopment directions of the province association of RCC. The third chapter,Introduces the nature and function of the four patterns (rural commercial bank, ruralcooperative Banks, industry associations, financial services company) which will bethe future development of the provincial association and analyzes the pros and consof the four patterns and their respective adaptability. In the fourth chapter, relevanttest indicators are set up to compare the value of the efficiency of the four patternsand come to the conclusion that rural commercial bank has the highest utility value.Take the Successful reform of Chongqing rural commercial bank as an example tofurther sure the feasibility of rural commercial bank. For the economic developmentis not balanced in many provinces, all kinds of models are also different. Eachprovince has to choose the reform mode depending on the level of their economicdevelopment. The5chapter has carried on the summary to the full text, analyzed thedeficiency of research and future research prospects.