The Research Of The Banking-Supervision In The Course Of The Reform Of Rural Credit Cooperative

Rural credit co-operatives are financial institution for the economic development of agriculture ,peasantry and village; are main forces of agricultural finance; are linked with immense countrymen. Now rural credit co-operatives face great chance of reform. How to perform reform measures and how to ensure the policy of support of reform to be put into effect, is new situation faced by the supervision of rural credit co-operatives.Through fifty years of the development, rural credit co-operative actively deepen the reform of mechanism, ameliorate internal management, rectify the diection of business, the quality of preventing and eliminating the risk has been gradually improved .Now it had been the important part of the financial system. With the development of the rural economics and gradual advancement of the reform of rural financial system, some existing basic problems about it had been gradually exposed. Not having clarifying ownership and corporate goverance is the largest barrier for restricting the development of the rural credit cooperative, so do some special system arrangement. Heavy inherited burdens aggravate the business burden of rural credit co-operative.Accompanying the development of the rural credit co-operative, the supervision for it has been gradually improved. In the course of the cooperate finance supervision, there are a lot of questions, for example: supervision put emphasis on standard and market and overlook risk and ordinary management , establishment of on-site examination items ignore sciance and plan, off-site surveillance has been passively tackled and lack foreseeing. Some merit system of supervision demnify enthusiasm of supervision personnel and include contradiction between few cooperative supervision personnel and overabundance of credit corporate institution, andso on. Probe into its cause: first, false orientation of cooperative financial supervision; second, frangibility of base of supervision system; third, old supervisory ideas, the content of supervision don' t give prominence to the requirement of prudential rules; fourth, pay attention to external supervision and overlook the importance of internal control; fifth, don' t establish effective training mechanism of supervisory personnel. To solving the underlying problem existing from content and manner of supervision to measure of supervision and to change characteristic of cooperative finance including close , frangibility, community, and so on; help to advance continuing, effective, prudential financial supervision.On April 28, 2003, China banking regulatory commission come into existence and indicate that banking supervision of China enter into a new phase. With the promulgation of the law of the banking supervision and management and new regulatory ideas, specialization of the supervision had been greatly improved. Now six aspect of conversion must have been done: the conversion of dominant administration into prudential in supervisory ideas, the conversion of maintenance for trade benefit into maintemance for public goods in supervisory object aspect; the conversion of standard supervision into risk supervision in supervisory method aspect; the conversion of ending supervision into uniformity of course and ending supervision in supervisory emphasis; the conversion of temporary arrangement and ambiguity of standard into criterion and system in supervision runnable mechanism; the conversion of traditional hand manipulation into electronic network in supervision technique aspect. The above measures greatly promote the development of cooperative financial supervision.Effective supervision suggestions for strengtheningcooperative finance has been put forward in regard to existing questions. The perfect of measures of the supervision has been emphasized on the market entry, on-site examination, off-site surveillance and remedial and market exit of question financial institution; How to perfect the credit rating system of China and internal rating system and internal risk model and to strengthen the establishment of information exposure system and fund insurance system , and so on, has been bring forward in the mend aspect of financial surroundings.To analyze the banking supervision require not only a comprehensive understanding of a lot of supervisory questions faced by the banking supervision but the banking question faced by the banking supervision. Regardless of the development and reform of the rural credit cooperative, to prate the cooperative financial supervision is incomprehensive. So I expound the relations between the supervision and development of credit cooperative through two lines in the text. One relate to the history of the development of the credit cooperative , the current reform and the expecations of the future of the credit cooperative; the other relate to the development of system of the supervision, including the reform of the supervisory system, updating of the supervisory ideas and the implement of the new supervisory means. How to promote the development and reform of the cause of the cooperative finance through the development and to promote the development of rural credit cooperative by scientific supervisory means, are subject matter to be probed into together with everybody today.