A Study On The Development And Countermeasures Of Rural Mutual Fund Cooperative

Reform and opening up30years, there has been a rapid growth of national economy in China, but the development of rural economy is still restricted by the shortage of funds, and the rural fund gap is growing. Facing the great financial needs of farmers and small businesses in rural areas, formal financial institution is lack of financial service, while rural private finance is actively developing, and related innovation is gradually increasing, the practice of informal financial system arrangement is born. Under the guidance of financial policy regarding the promotion of rural financial system innovation, rural financing activities gradually get specification. A new type of rural cooperative financial system arrangement is formed, namely rural mutual fund cooperative. The establishment of rural mutual fund cooperative has important practical significance. It has realized the mutual fund cooperation between farmers and small businesses, met the farmer’s capital requirements. In December2006, the China banking regulatory commission promulgated The Several Opinions, permitted that farmers and small businesses in rural areas can be jointly sponsored by the community of mutual credit cooperative financial organizations. Early in2007, the CBRC formulated The Articles of Association of The Demonstration, defined the rural mutual fund cooperative as a new type of financial institution. Then the country gradually introduced a series of policies, to guide and encourage the development of rural mutual fund cooperative.This paper takes cooperative theory, asymmetric information theory, transaction cost theory as the foundation; defines and expounds the basic connotation, type, advantage of rural mutual fund cooperative; takes the Yimin rural mutual fund cooperative as an example for in-depth case analysis; explores the reason about the alienation of rural credit cooperatives and the collapse of rural cooperative foundation; introduces successful cooperation financial practices abroad in detail; according to the current situation of rural mutual fund cooperative, puts forward relevant policy suggestions. The framework of this paper and the main content are as follows:the first part is exordium, which introduces the connotation of rural mutual fund cooperative, background and the significance of this study. The second part is literature review, the rural mutual fund cooperative related literature at home and abroad were reviewed. The third part is a basic overview of rural mutual fund cooperative, including the basic concept, classification, characteristics and advantages. The fourth part selects a representative rural mutual fund cooperative, that Yimin rural mutual fund cooperative for further analysis, summarizes the achievements and the plight, provides useful lessons for the development of rural mutual fund cooperative. The fifth part is an introduction of the experience of rural mutual fund cooperative at home and abroad. Probe reasons about the alienation of rural credit cooperatives, and the collapse of rural cooperative foundation at home. Introduce mature cooperation on international financial practice. Finally provide practice guidance for the rural mutual fund cooperative. The sixth part is the summary. On the basis of the previous chapters discussed, sums up the general status of rural mutual fund cooperative, proposes the urgent need to solve the problems. The seventh part is the relevant policy recommendations. Based on the current situation of rural mutual fund cooperative, this paper puts forward policy suggestions on the development of rural mutual fund cooperative.