Credit Unions Support The Development Of Rural Economy And Countermeasure Research

The 19 th National Congress of the Communist Party of China(CPC)put forward the " implementationof the rural revitalizationstrategy".In2017,Central Document No.1 proposed tospeed up rural financial innovationand support rural financial institutions totake root inlocal areas toserve agriculture,rural areas and farmers.The country has raised the issue of agriculture,rural areas and farmers toa new level related tothe national economy and the people's livelihood.In order to realize the objectives of the 19 th National Congress and realize the revitalization of the countryside,financial institutions are required to provide financial support.The development roles of rural economy and financial institutions are mutually reinforcing and supporting.The central government requires regulatory agencies and financial institutions to promote the innovation of rural finance and support small and medium-sized financial institutions in rural areas to increase their services.This shows that the state has strengthened the position of rural financial institutions in serving the local economy.As a regional financial institution serving local economic development and an important subject providing rural finance,credit cooperatives are duty-bound to support rural economic development and play an important role in practice.Starting with policies,development data and support,this paper studies the rural economic development supported by credit cooperatives in Lushan County through literature review and on-the-spot investigation.It analyzes the financial institutions,economic development,post-disaster reconstruction,merchant enterprises,main experiences of credit cooperatives,credit cooperatives support and relevant data in the past ten years.It is found that there are some problems in the support process,such as insufficient credit supply reduces the speed of supporting economic development,high credit cost and increased default lead to the impact on the regional credit environment and support effect,deposits do not increase but decrease lead to the weakening of the staying power of supporting economic development,few high-quality projects in the county lead to the lack of support platform and income channels for credit cooperatives,insufficient financial innovation restricts the level of financial services,policy and efficiency considerations affect the support effect,and high operating costs lead to the increase of financing costs.This paper systematically explores the reasons from four aspects: regulatory policies,credit cooperatives,customers and competitors.In terms of regulatory policies,the reasons include the narrow revenue channel caused by the business not allowed to leave the county,and the single service product caused by the high threshold of regulatory policies.The reasons for credit cooperatives are: the lack of scientific and technological strength leads to increased competition difficulty;the need to perfect the wind control data leads to increased wind control difficulty;the impact of service quality leads to customer loss;settlement barriers lead to loss of high-quality depositors;and insufficient innovation leads to single products.On the customer side,the reasons include: the reduction of effective customers leads to the weakening of the deposit and loan basis,insufficient project demand leads to the weak foundation of fund support,inconsistent credit conditions hinder credit support,irregular management leads to information asymmetry,and weak integrity awareness affects the enthusiasm of support;On the other hand,the competition for high-quality customers has caused the support base to shake,the high-interest competition has robbed the deposit market,and the systematic marketing efforts have occupied the public office market.In view of the above reasons,this paper puts forward countermeasures and suggestions from the aspects of policies,credit cooperatives,customers,etc.On the policy side,it is suggested to relax the supervision policy moderately,broaden the revenue channels,and innovate the restructuring mode to open up business channels;Suggestions for credit cooperatives include sticking to the market positioning,building up the rural market,improving business channels,boosting deposit growth,focusing on young customers and consolidating the deposit and loan basis;On the customer side,it is suggested to establish a good faith awareness,create a good faith environment,broaden channels for income increase,strengthen financing conditions,strengthen corporate governance and enhance financing capacity.