A Study On The Development Path Of Rural Cooperative Finance In China

The experience of developed countries shows that cooperative-finance, as "self-owned, self-management, self-service" financial shape, has a unique function and role in rural finance. A effective rural-finance system consist of rural cooperative finance, commercial finance, and policy finance, of which the rural cooperative financial plays a fundamental role. In China, the recent study shows that rural credit cooperatives(including rural cooperative banks) has never been rural cooperative financial institutions.After 30 years reform,the rural credit cooperatives finally evolved to commercial model,which make cooperative finance of china blank.Lacking of rural cooperative finance, which highlights the shortcomings of China’s rural financial system, is a fundamental reason of inadequate rural financial services.Based on the fact, China Banking Regulatory Commission,in early 2007,issued policy to reduce rural financial entry barriers,which allowed farmers running the "rural mutual-fund cooperatives".But rural fund cooperatives were set up only 49 in eight years. This poses the following questions that why the cooperative financial which is very important to the rural has not been able to develop ? What are the causes and obstacles? What is a reasonable path for rural finance in China? This study is launched in the background of the above problems.According to China’s rural reality and combining with relatively mature experience of foreign rural cooperative financial development, this study give a reasonable rural cooperative financial path in China.At last,it provides reference guidelines for the development of rural finance.Cooperative financial were initiated in European,which had been hold by "one man one vote" democratic cooperative system.It focus on building a rural cooperative financial institutions for sustainable development from top to bottom,and it also works for those who have been excluded from the financial institutions,which provide low-income persons in rural areas financial services,to enable them increasing their production capacity. In European countries,Rural cooperative financial models aredifferent, which conclude Germany pyramid, the United States and Denmark composite, French government-led model, Japan and South Korea cooperative mode.But,China is a developing country,so that the foreign model of rural cooperatives can not be applied. In these years,rural commercial finance can not serve low-income people effectively,and the cooperative finance also develop slowly.Therefore, a reasonable choice of rural cooperative financial path should be the most important issue in rural finance system.The main contents of this study are as follows: First, it analyses the history of cooperative finance in china, the current situation,and the problem of cooperative finance.Secondly,it summarizes foreign cooperative finance by four countries,which are Germany,England,America,and Japan, to provide reference for the development of rural cooperative financial.Thirdly,based on the analysis of situation and problem of rural cooperative finance,which demonstrate the conclusion with the logic of Rural mutual funds, this research studies three kinds path of rural cooperative finance in China.At last,In order to promote the development of rural cooperative financial,it put forward a series of suggestions.In china,it should establish formally cooperative mechanism between financial institutions and cooperative financial institutions.Institution of policy-finance should set policies to support cooperative financial institutions.In addition,The government should establish The Cooperation Financial Legislation,and should give subsidy to the development of rural cooperative.