The Restructuring Effect Research Of Yingdong Rural Commercial Bank

During the last ten years, with unceasingly increasing rural economic development level of China, the interest rate marketization is speeding up and the level of competition in financial market is growing, as the main force of rural credit cooperatives, the problem of supporting the "three agriculture (agriculture, rural areas and farmers)" with their development and reform to adapt the new environment has been brought to great attention once again.In our country, rural credit cooperatives have seen many twists and turns in the development since the founding of People’s Republic of China. In different development phases, due to deficiencies of their own in the management system, operating principles and personnel qualifications, rural credit cooperatives, which are targeted with supporting the development of "agriculture, rural areas and farmers" haven’t fully played their roles and are far more from conforming to the requirements of rural economic and social development. Under the background of construction of socialism new countryside and urbanization, China’s rural credit cooperatives shall make further improvements in meeting fund demand of rural financial market, facilitating rural economic development, promoting agriculture industrialization and speeding up the farmers’ income. In order to effectively promote the development of the rural credit cooperatives, Chinese government pushed forward reform experimentation of rural credit cooperatives in Jiangsu province in2000and founded three rural commercial banks at the county level in2001. After2003, the deepening reform experimentation rural financial system nationwide has been carried out step by step in view of the satisfactory effects of the previous reform experimentation. This reform experimentation is mainly aimed at major transformation in management system and operation mechanism of China’s rural credit cooperatives to build rural credit cooperatives meeting modern economic and social development, transferring administrative functions to provincial government for management, establishing province cooperative union and setting up rural commercial banks and rural credit cooperative banks in some developed area. After2011, the China Banking Regulatory Commission announced that the national rural credit cooperatives shall complete credit cooperatives share-holding reform within five years, no rural cooperative banks will be built and existing rural cooperative banks shall be reorganized into rural commercial banks. By then, the establishment of share-holding rural commercial banks will be the main orientation of reform of China’s rural credit cooperatives.The paper lays emphasis on empirical analysis with the example of Fuyang Yingdong Rural Commercial Bank. First of all, a brief introduction of the current development situation of foreign countries such as Germany, the United States, France and Japan and a detailed presentation of the development of China’s rural credit cooperatives since the founding of People’s Republic of China are given.Secondly, by evaluation of the background, necessity, feasibility and effects of share-holding reform of the specific case-Yingdong Rural Credit Cooperative as the example for all other rural credit cooperatives, a study on several issues is given, including whether the reform mode of rural commercial banks adapt to development of local economy, whether the ideal target of supporting the "agriculture, rural areas and farmers" is realized, whether self-improvement is achieved, besides, detailed countermeasures and suggestions for future development of Yingdong Rural Commercial Bank for reference. Finally, a reflection and summary is made on the basis of facts the above mentioned, which mainly includes:first, the primary factor limiting the development of China’s rural credit cooperatives is vague property right; second, the main direction towards development of China’s rural credit cooperatives are share-holding commercial banks; third, the government shall provide support in policy and fund to accelerate the process of transformation into rural commercial banks of rural credit cooperatives.