Credit Cooperatives Of Farmer’s Professional Cooperatives:a Literature Review

Agriculture is the foundation of the national economy industry. As an important part of rural modern agricultural entities, professional cooperatives are facing the financing bottleneck. But effective supply of rural formal financial system is lack and informal financial system is still in the pilot phase of exploration. The availability of the rural credit is quite low and the transaction cost keep on the high level, of which the reason is the moral hazard and adverse selection problem caused by information asymmetry. On the Third Plenary Session of the Seventeenth Central Committee, it was pointed out that:"Credit cooperatives is allowed for the professional cooperatives which meet the requirements". During these years, academic members has been researching a lot on this topic. This article mainly chooses the system arrangement, financing problems and credit cooperation issues of professional cooperatives to summarize.First of all, there is some extent drift on the qualitative nature of famer’s professional cooperatives compared with traditional cooperatives. It has been demutualisation and collectivization gradually. The corresponding governance structure forms under this cooperative concept and the property right structure. Their common influence the choice of cooperative financing structure.Secondly, there is an external financing predicament for professional cooperatives which is caused by internal and external by common. Internal factors includes weak natural quality of agricultural, the characteristics of professional cooperatives and the unsound financial regulations and so on. The external factors are maily rural financial supply subject vacancy, lack of risk disperse mechanism as well as the governmant guarantee measures and so on. In contract, internal financing in the credit cooperative is due to the advantage of "social capital", which has higher feasibility.Thirdly, this paper generalizes the exiting reseach on the methods, content, risk dispersing mechanism and policy support system of the credit cooperative. And those international classic credit cooperatations are studied by many scholars, by which they try to find some usefull experience and methods that suit to ours. This article also has carried on the brief summary.At last, in this paper, the agreement and content that has been deeply researched on the credit cooperatation of the professional cooperatives are summaried. And this paper tries to put forward the possible further research of the space to provide some suggests for the furture research on rural credit cooperatations and rural finance.