Study On Internal Governance And Product Design For Rural Credit Union Funds Performance Influencing

Rural Mutual Performance Factors is the core of the new rural institutional research topics is also one of MFIs study abroad as a priority issue. The level of performance of the union’s future development has a positive role in promoting, therefore, how to improve the union performance, identify performance increase factor is crucial. The scholars Unions performance influencing factors are also very active, but most of these studies focused on the level of institutional arrangements, there is little internal governance and product design from the two direction of economic and social benefits of performance, the former is the foundation of union, which is union conditions for sustainable development. Fund cooperatives in rural areas an important part of financial institutions for the promotion of rural economic development, building rural financial system has a very important strategic and practical significance.First of Taihu County, Anhui Province three credit union funds for the study, statistical methods and case studies through the means of funding union’s internal governance and elaborate the contents of the product design, analysis of possible factors, identify mutual community-specific internal risk control mechanism and loan design, formal and non-formal types of credit union funds are compared, the results showed the CBRC approval of the formal union funds in asset size increased an advantage, and its prudent risk control mechanism is suppressed to some extent, the expansion of loans, thus affecting the development of the union.Secondly, two types of union funds through Lake County internal and external performance comparison:discovery union internal performance has low rate of non-performing loans, asset size growing characteristics, while allowing deposits of credit union funds in the absorption of a large number of idle funds while the funds invested and made available to farmers to productive loans, loan to deposit between the enhanced liquidity, so they can get more profit efficiency; performance analysis found in the external union good cooperation mechanisms for regional region to establish a community of trust and understanding of farmers on the union gradually clear understanding degree has been greatly improved.Then, based on previous studies, combining the characteristics of24union funds of Anhui province by various factors AHP will decompose multiple levels, the use of matlab software, through qualitative and quantitative analysis to select the most significant factors found in the internal governance performance against union influence in the weights is relatively large, the main factors affecting the overall capacity of the Council, whether relying on professional cooperatives, of the total capital, capital stock structure, exit, mortgage and repayment flexibility. Which completely relying on professional cooperatives and unions to enhance the performance of a negative correlation, other factors will facilitate performance improvementFinally, in the concluding remarks, based on the proposed union should stick with the combination of economic production, the rural areas into production, specialization and scale, to achieve revenue maximization; encourage financial literacy background people to join unions; cancel Share Capital and exit barriers mechanism design, fully embodies the "free " principle; supervision and control of the government, union funds to support long-term development.