The Compatibility Between Commercial Management Performance And Agricultural Related Service

Rural credit cooperatives(RCCs)have become the most formal financial institutions in rural areas in China.For the RCCs,“Serving agriculture,rural areas and farmers” is the historical responsibility and this goal cannot be changed,while achieving its sustainable commercial development is of great importance for guaranteeing the implement of agricultural related service mission.Thus,there is a realistic conflict between the dual objectives of the rural credit cooperatives,which means that they cannot simply emphasize the support of agriculture and sacrifice their own development.In this paper,we reference and absorb the theory of financial reform of rural institutions and rural financial development.On the basis of these theories,we utilize the Anhui province's panel data of 81 RCCs during 2005-2014,and analyze the institutions' present management situation and exist dilemma.Then we measure the RCCs' performance efficiency in the sample period and construct the panel threshold model to measure the relationship between the RCC's commercial management and agricultural related service.The results show that:(1)In the sample period,with the implement of rural financial reform,the county rural credit cooperatives have basically embarked on the road of commercialization and sustainable development.(2)The performance of the RCCs represented by the pure technical efficiency is greatly enhanced,and the improvement of TFP stemmed mainly by the pure technical efficiency.(3)The influence of agricultural related services on the performance of RCCs is nonlinear.When the asset growth remains at a low and high level,agricultural services will negatively affect business performance.Also,while the asset growth and loan assets ratio reaching at moderate level,agricultural related services will improve the performance of RCCs.On the basis of this paper,to reconciled the dual goal between commercial management performance and agricultural related service,we put forward several policy recommendations for RCC institutions and related government.For RCCS,it is vital to keep moderate development speed.And on the other hand,how to better play the role of guidance and incentive should high on the agenda of the the related government.