Research On The Insufficiency And Reform Of Rural Credit Cooperatives Supervision System In China

Finance play a vital role in the historical process of building new socialist rural areas.Resolving issues relating to agriclture rural areas and Farmers’s incomes, finance providessupport. Since2004,the Central government has stated No.1documents emphasizing theimportance of the rural financing, showing the determination of Center government in ruralfinancial restructing, And notable achievement has been made.In China, diverse ruralsmall-and-medium-sized rural financial institutions has appeared, we launched new-type ruralfinancial institution gradually,which competed with original financial insitution such as RuralCredit Cooperative. As a result, Rural Financial ecology has improved. The new ruralconstruction and mordern agriculture get their support and development. The development ofRural Credit Cooperative has put forward new requirements to financial supervision,howeverrural financial supervision remains weak all along. On the concern of the current ruralfinancial supervision system which promotes market competition, corrects market failure,and optimizes allocation of resources, it can not keep up with the development of RuralCredit Cooperations, so we need to innovate regulatory pathway and make supervisionmore effective.Good supervision system is crucial to rural financial market running efficiently.Especially in the background of accelerating rural financial market, constructing scientific,reasonable, and appropriate financial regulatory system is the key to future and destiny ofChinese rural financial market. In recent years, with the development of China’s ruralfinancial reform step by step, research on Rural Credit Cooperative supervision drawattention gradually. Based on the review of domestic and international research literature,from reducing the degree of information asymmetry, the writer raise solutions and proposalsby analyzing the reform development andspecificity, which supporting agricultural rural areasand farmers, improving regulatory rules, enhancing supervision ability.