Research Of Current Development Of Rural Credit Cooperatives In Sanyuan County And Countermeasures

As an important part of China’s financial system, rural credit cooperative is a special farmers-oriented financial institutions based in rural areas and occupies an increasingly prominent position as well as plays a more and more important role in the economic development of rural areas. Ever since 2003, China began to take reform in the system and historical issues of rural credit cooperatives so as to promote rural credit cooperatives better serve for agriculture, farmers and rural areas. In recent years, rural credit cooperatives in Sanyuan County obviously expand their scales with a constant increase of debit and credit business. However, there are still a series of problems in rural credit cooperatives, which gradually fall into a difficult position in reform and development with low operation and management level as well as weak risk control ability, etc. All these affect the competitiveness of rural credit cooperatives in Sanyuan County to some extent. This paper is divided into five parts.Part One first elaborates on the research background, purpose and significance of this paper, summarizes domestic and foreign researches and proposes main contents of this research as well as its methods, innovations and defects.Part Two is about the current situation of Sanyuan County Rural Credit Cooperative Union and its achievements. In recent years, Sanyuan County Rural Credit Cooperative Union has developed rapidly and made big improvements in supporting the development of rural economy. Detailedly, the business outlets have increased year by year, and the institutions and staff have been optimized while the deposit and loan business scale has been expanded, and the net income of farmers also improved.Part Three is to discuss the main problems faced by Sanyuan County Rural Credit Cooperative Union in its development.The following aspects will highlight these problems.The imperfect management system and internal management mechanism as well as the heavy historical burden have limited the development of rural credit cooperatives, and the interference of government departments and the weakness in the democratic managements have resulted in the relatively small size, the low efficiency and the weak management links,which is far away from the original intention of financial cooperation. In addition, with the lack of financial services products, the comprehensive service function is not sturdy, and theinvestment or financial service channels are still relatively simple, which has caused a large amount of outflow of funds in rural areas. Lastly, with the relatively imperfect supervision system and low comprehensive quality of the staff as well as the lack of professional financial personnel, the financial ecological environment of the rural credit cooperatives and the organization system need to be optimized.Part Four gives an in-depth analysis of the reasons of those problems. The reasons mainly manifest in the following aspects: the structures of the legal person and legal principle are not perfect; the rural credit cooperative union lacks legislation; the property ownership is not clear; the sources of funds are too simple; the operating mechanism is not flexible; the local government meddles too much; and the financial service environment is not very good.Part Five aims to find out the deep-seated problems based on the existing ones, and combining with the management present situation of Sanyuan County Rural Credit Cooperative Union and the existing research results to put forward countermeasures and suggestions to improve the development of the rural credit cooperative union. Firstly, the management system should be improved and the main force role of rural finance strengthened.Secondly, with continuing to strengthen management and financial business, the property rights and should be indentified as soon as possible, diversified reforms carried out and supports in agriculture constantly enriched. Finally, to avoid the occurrence of rural financial risk, the environment of the legal system should be improved and the construction of legal system of rural credit cooperatives be strengthened, and the guarantee mechanism should also be established. At the same time, construction of enterprise culture and talent team should be noticed and supports form the government be emphasized.Part Six is the conclusion and prospect.