Research On Rural Cooperative Financial Regulation Legal System

Since the reform of rural finance cooperative pilot launched in 2003, the China Banking Regulatory Commission has taken measures to planning the overall regulatory framework carefully pushing forward the detailed supervision in the unified arrangements of the Central Committee of the Communist of China and the State Council, and the help of The State Council of the people’s Bank, the Ministry of finance, the State Administration of Taxation and local party and government organs at all levels. Based on China’s basic national conditions, it has achieved remarkable results in supervision of rural cooperative finance. However, with the advancing step by step of reform of China’s political, economic and financial system, problems of China’s rural cooperative financial institutions and the sharp contradictions have become a grim constitution in making China’s economic policies. For example, the long-term lack of specialized system for cooperative financial legal system supply, rural cooperative financial institutions lack of clear legal position, result to an ambiguous boundary of responsibility in Provincial Association, which seriously hinders the management functions of laws and policies. As also as insufficient support to the scale and strength, imperfect corporate governance; lack of current regulatory means, which directly results to insufficient and high risk rural cooperative financial institutions credit and operational, and so on. Under the effect of the above factors, China’s rural cooperative financial institutions have appeared their financial fragility gradually. It directly leads to vanishing of rural service business purposes and rising of illegal deposits and other financial crime. Rural cooperative finance has become a major threat to rural financial system, and has seriously hindered its own business development and economic prosperity in rural areas. This paper, basing on the legal supervision status of rural cooperative finance in China, aiming at serving the rural economy and combining the basis of research results at home and abroad, discusses the concrete measures of perfecting the legal system of rural cooperative financial regulation. The article is divided into four parts as a whole. Its first part mainly expounds the basic concept of rural cooperative financial regulation, including the Principle of Virtual Dell, which is the sources of thoughts to rural cooperative finance, cooperative finance, cooperative, and the concept of financial regulation and system, to emphasize the necessity of strengthening rural cooperative financial regulation in our country at present stage. Its second part introduces rural cooperative financial regulatory status quo, mainly including means, methods in the current laws and regulations about rural cooperative financial regulatory, market accessing and exiting mechanism, and so on. Aiming at a macroscopic analysis on rural cooperative financial regulatory system in China, then exploring the cause of defect actively Its third part detailed introduces rural cooperative financial organization regulation in Germany, the United States, France, Japan and India, to provide the beneficial reference to our country rural cooperative financial regulation. Its fourth part puts forward concrete suggestions to our country rural cooperative financial regulation system after summarizing above. These suggestions include establishing perfect regulation environment to provide rural cooperative financial regulation system supply and building system of rural cooperative financial regulatory framework two aspects of content. In detail, improving the regulatory environment contains enacting the Rural Cooperative Finance Law to define the legal nature of rural cooperative finance and clear legal status of rural cooperative financial organizations. As also as clearing rural cooperative financial operation and management mechanism, increasing policy support from rural cooperative financial income and improving the market accessing and exiting mechanism, etc. Building system of rural cooperative financial regulatory framework includes defining the frontiers of regulation, choosing appropriate regulatory model, taking measures to improve supervision level and improving the quality of regulators business.