Study On Property Right System Reform Of Wuhan Rural Credit Cooperative

Rural Credit Cooperative is an important components of China's finance system as the basis of rural finance.Since its foundation 50 years ago, it has played a significant role on economic development and rural society's comprehensive development in China. In spite of further reforms and explorations have been taken on its management, no essential progress has been made on property rights and organization system inside RCC since 1996. This systematic problem is urgency needs solving for government, finance supervision department and RCC itself and the focus of theory studying as well. On June 27,2003 the State Council of China enacted the Exploratory Plan of Deepening The Rural Credit Cooperative Reform. The plan indicates that there are mainly three kinds of patterns of RCC: Cooperation, Cooperation-share Capitalization, Share-Capitalization. Various patterns have respective characteristics and have different conditions and requirements towards the RCC. In view of the different degrees of economy development in different areas and the different operation conditions of the RCC, the reform should not be confined to just one pattern. According to experience through working in WHRCC for years and after comparing the three reform plans, I have done some research on the development pattern of WHRCC with emphases on Wu Han's unique characteristic as developing economic region. With consideration of the historical progress of WHRCC and analysis of the current economical, social and political conditions of Wu Han, I suggest that a transitional Cooperation system should be adopted in order that WHRCC take a lead to be eligible to the national compensation program. Once the accounting figures have met the requirement, a Share-Capitalization system will be implemented. Simultaneously, the mission of the reformed WHRCC will be "to develop regional economy"and the marketing target will be medium and small retailing business and local residents. The regional economy of Wu Han is developing, studies on reform patterns of WHRCC will provide RCC of similar regions some reference.