Study On Disposal Of Bad Assets In RCC

Since the State Council enacted the decision on the reform of rural finance system in Aug. 1996, the state has reformed rural credit cooperatives (RCC) a lot to make them standard. With the further reform of them all kinds of contradictions and problems are emerging, the reforms of RCC have entered the key phase. However, a great deal of bad assets in RRC system restricted the further reform and development. The large bad assets have a severe impact on the ability of profit and supporting agriculture and their development, how to dispose the large bad assets has become an important task of rural finance. Using the disposing measures of other financial institutions domestic and abroad for reference and on the principle of making a different treatment toward the different kind of bad assets, the bad assets can be disposed through the measures of taking back, reasonably peeling off and further reforming, and then RRC would play a important role of main force in rural financial system and promoting the development of rural economy and society, so it is very significant. This thesis analyses the current condition, cause and development of bad assets of RCC, and put forward the feasible policy advice. The main body is as follows:The first part is introduction. It comprises five sections, which are as follows: the purpose and significance of selecting the theme, the development of RCC and the definition of its character, the definition of bad assets of RRC, the summarization of former studies and the expected goals. Firstly, the thesis points out that the disposal of bad assets of RCC will benefit the RRC in playing the important role of main force and promoting the all-round development of rural economy and society. Secondly, the thesis introduces the evolution of RRC and defines its characters in planning economic system and the succeeding reform of marketing, which is helpful to understand the form of bad assets. Finally, the thesis summarizes the former studies, and presents the main contents, research methods, expected goals and innovation points. The second part is the current conditions of bad assets of RCC. Firstly, thebad assets of RRC in several provinces and all over the country are presented, which shows that there is a highly proportional and a great deal of bad assets that are required to dispose of. Secondly, the thesis points out that the current bad assets are different in every RCC due to the different conditions of RCC.The third part is the form analyses of bad assets of RCC. Firstly, the thesis analyses the macro background of forming bad assets of RCC, which are as follows: system change, different frame between city and country, the development of national economy and macro economic policy, rural financial system, society credit and the surroundings of legal system. Secondly, the micro factor are analyzed, which as follows: village-and-town enterprises, local government, collective organization of village, agriculture bank, "two-hui-and-one-bu" and urban credit cooperatives in county, farmer and individual business unit, RCC oneself. They have also an impact on the form of bad assets. So we can conclude that there are so many factors and concerning subject that have something to do with the form of bad assets of RCC. Finally, the forming courses of bad assets of RCC are analyzed to show that what factors can have an impact on the form of bad assets in different phase.The forth part is the experiences of disposing bank bad assets at home and abroad. Firstly, the different modes of disposing bad assets are classified according to different standard. These point out the basic problem of disposing of bad assets. Secondly, the practices of disposing bad assets of USA, Sweden and Poland are introduced. Finally, the experiences of disposing bad assets are summarized.The fifth part is the disposing bad assets of RCC. Firstly, the capital resources of disposing bad assets are discussed. The author points out that the government should take over some bad assets by use of public fi...