A Research On Reform Model Of Heihe City County Rural Credit Cooperatives Union

Rural credit cooperatives in China has been developing for60years, afterseveral-year reform, Heihe city county rural credit cooperatives union stillengaged in simple traditional financial business, its slow growth of capital scalecan not meet the requirements of the development of the modern agriculture. Andthe competition of rural financial market becomes stronger, Rural creditcooperatives cannot follow the other financial institutes not only from thecorporate governance but also management system, staff quality, capital strength,business and service level. There will be a big difference between Rural creditcooperatives and other financial institutes if Rural credit cooperatives cannotmake a strong reform and change the way of his development. This paper takesthe reform of Heihe County Rural credit cooperatives as the background,according to the modern property rights theory, the use of empirical analysis andcomparative analysis, quantitative analysis and qualitative analysis method, toaims to find out the deficiency and reason, and makes a sustainable developmenton the deep research on the reform of Heihe County Rural credit cooperatives. Atthe same time, the relevant research results can be provided to the managementdepartment and the supervision departments for supplying the theory and thereference for reform of the other financial institutes of the same kind.First, this paper analyses the situation of reform on Heihe County Ruralcredit cooperatives, focusing on problems, and the reason why it raised thequestion. Then it makes the comparison in the both merits and demerits of3kinds of reforming model and define the reforming model by analysis on theeconomic environment and both inside and outside reforming environments inHeihe. After that, it expounds the requirements to establish a Country Ruralshareholding system commercial bank, and find out that County Rural creditcooperatives should choose the method of establishment and regroup by ma kingthe comparisons of selfconditions for5County Rural credit cooperatives and2kinds of establishment methods. At last, it suggests that Country Ruralshareholding system commercial banks after establishment should improve the corporative administration, changing operating method and enhance internalcontrol.