Research On The Impact And Countermeasures Of The Implementation Of The Deposit Insurance System On My Country's Deepening Of The Reform Of Rural Credit Cooperatives

Rural credit cooperatives are the main force of rural finance in our country,which plays an important role in financial services in rural areas.Since the establishment of rural credit union in our country,reformations according to it have been held several times,and the progress has been smooth and remarkable.However,the current non-performing loan ratio of rural credit cooperatives is still high;the problems of small size,weak capital strength and poor risk tolerance also restrict the development of rural credit cooperatives.Deviation from the mission of "agriculture,rural areas,and farmers" and the poor quality of assets are still the main difficulties faced by rural credit cooperatives.All kinds of problems result in that the rural credit cooperatives have to face serious risks,and it is difficult for them to undertake the task of serving the "three rural",which further restricts the development of rural economy.Therefore,it is an urgent problem for rural credit cooperatives that how to further deepen the reform of rural credit cooperatives so that make them play the role of "agriculture supporting"better,which can not only meet the financial needs of rural economic development,but also facilitates the sustainable and healthy development of the rural credit cooperatives,under the reformation of the financial system and the increasingly competitive environment in our country.International experience shows that through a specific legislation,deposit insurance system can make up the possibility of loss of insured institutions,protect the interests of depositors and stabilize public confidence to the banking system,and then can ensure the healthy and sustainable development of banks.Therefore,in the process of deepening the reform of rural credit cooperatives in our country,some scholars put forward the implementation of deposit insurance system as the supporting mechanism to the reform of rural credit cooperatives,to ensure the healthy and sustainable development of the rural credit unions,and stabilize the financial system.The establishment of deposit insurance system aims at guaranteeing the interests of small depositors,raising public confidence in small and medium-sized banks,preventing depositors' runs and resolving bank risks in a timely manner so as to stabilize the financial order.The study found that the establishment of deposit insurance system is beneficial to boost the credibility of rural credit cooperatives,accelerate the sustainable development of the commercial and financial innovation,optimize the management system of rural credit cooperatives and improve the market exit mechanism.However,according to the deviation of "three rural" risks and operational risks,the deposit insurance system does not provide a fundamental solution.In addition,the deposit insurance system itself also has the serious problem of moral hazard and adverse selection.Therefore,deposit insurance system is not omnipotent,it cannot replace the prudential supervision function of the regulatory authorities,nor can it replace the lender of last resort function of central bank.Objectively speaking,deposit insurance system can only serve as an important external environment to protect the interests of small depositors in rural credit cooperatives and prevent runs,rather than a fundamental guarantee system.Therefore,we should not over-rely on the deposit insurance system and neglect the risk management of rural credit cooperatives and the active solutions to the existing risks of financial structure.Based on the theory of endogenous monetary,this study interprets the nature of the deposit insurance system,researches the influence of deposit insurance system to rural credit cooperatives and the still existing problems of rural credit cooperatives,and recognizes that the structure of rural credit cooperatives must be optimized to deepen the reform of it,strengthening the function of serving "three agriculture" and avoiding risk.By the interpretation of the nature of rural credit cooperatives under the theory of endogenous monetary,the study thinks that the communitization reform of rural credit cooperatives is the effective path for rural credit cooperatives to get out of the dilemma and solve the rural financial hollowing crisis.Based on region and relations with local people,American community banks make good full use of "soft information" advantage to achieve fast and efficient decision-making,providing the most effective and humanized financial services for the community and avoiding the financial risk at the same time.What's more,American community banks showed a strong ability to resist risks in the financial crisis.And the study also holds that as a local financial institution in China,rural credit cooperatives are similar to community banks in America in the aspects of the policy resources,market positioning and popularity geopolitical relations,so it is worth to draw lessons from the experience of the development of American community banks,and then,the main countermeasures from the internal and external aspect of rural credit cooperatives to communitization reform follows after.Under the background of the implementation of the deposit insurance system,this paper try to explore the deep reform of rural credit cooperatives,and put forward the countermeasures of community-based services reform about strengthening the "three rural" construction and realizing the steady and sustainable self-development,in order to eventually realize the virtuous circle and sustainable development of rural economy.