Provincial Rural Credit Cooperative Union Reform Mode Selection

Rural credit cooperatives is an important part of the main force of China’s ruralfinancial system in China and also the important subject of rural cooperative financialinstitutions of the important economic and financial policies implemented to supportthe "three rural" development is China’s government departments. Deepen themanagement system reform of China’s rural credit cooperatives, rural creditcooperatives steady development, an important prerequisite for good results, and alsothe "three rural" sustainable and an important guarantee of rapid development, it isthe objective requirements of building a socialist harmonious society in China. Sincethe beginning of2003, the management system in China’s rural credit cooperatives toimplement major reforms, the core content of the right to the management of ruralcredit cooperatives to the provincial People’s Government, For this reason, the vastmajority of provinces and cities have opted for "provincial association" managementmodel.The management system of China’s rural credit cooperatives, after severalgovernment-mandated change, has experienced production team, the management ofthe people’s communes, and later managed the revocation of the Agricultural Bank ofChina and re-established the Agricultural Bank of China and the People’s Bank ofChina on its alternately. China’s rural credit cooperatives the provincial associationmanagement, rural credit cooperatives in the overall management costs declinedsignificantly, regulatory efficiency can be greatly improved, but the managementsystem, there are some inherent shortcomings, such as the management system is notsmooth, grass-roots credit cooperatives autonomy and independence can not beeffectively guaranteed, and the management of rural credit cooperatives are an important focus in administration and industry management, and corporategovernance of the grass-roots community figurehead; addition, the managementsystem of the provincial association failed to address the objectives of the rural creditcooperatives diversified business of the conflict, but also for the rural creditcooperatives bring more potential risks.Provincial association management model must be facing deep-seated reform.Current research, the provincial association management model mainly the formationof provincial rural cooperative banks, rural commercial banks and the formation ofthe rural credit cooperatives, industry associations, adhere to the provincialassociation management of four, four modes of rural credit cooperatives in the reformof the management system of internal and external environmental conditions there aresome different. View of the successful experience of the developed countries offoreign rural cooperative financial cooperative financial management model does notsay the best choice, should be read in conjunction with the actual situation around,according to local conditions, suitable for the development of local rural creditcooperatives and promote local economic development mode. The current situation ofChina’s provincial economic development, economic development in the moredeveloped eastern and coastal areas can try to implement the formation of aprovincial-level rural commercial bank management model; level of economicdevelopment of the rural economy central provinces occupy a certain status, you canchoose to set up provincial level management model of rural cooperative banks; forthe economy is relatively backward western provinces, still need to get the support ofgovernment policies, should be to maintain the current management status of theprovincial association. In addition, regardless of the provincial rural creditcooperatives in China the choice of management mode, the formation of the industry association of rural credit cooperatives, with the China Banking RegulatoryCommission on the development of rural credit cooperatives to implement externalregulation, it is extremely necessary.