The Research On Development Of China's Rural Mutual Credit Cooperative

Rural finance is the core of the rural economy, the backwardness of rural finance seriously hinders the development of China's rural economy. The main problems of rural finance are imperfect rural financial system and the contradiction of financial supply and demand. International experience and the reality of China's rural economy have shown that cooperative finance is the key to solving financial problems in rural areas. Rural mutual credit cooperative is an effective organization of rural cooperative finance and an effective institutional arrangement to develop China's rural finance.Relevant government departments have introduced policies and regulations to promote the healthy development of rural mutual credit cooperative, includingin 2006 and < Provisional Rules Governing the Management of Rural Mutual Cooperatives >, in 2007, etc. Rural mutual credit cooperatives are still a new phenomenon, so facing various problems in the development. In the current reality of situations, in-depth study of rural mutual credit has important theoretical and practical significance.Firstly, this paper describes the theoretical basis of the development of rural mutual credit cooperative, including the theory of Financial Repression and Financial Deepening, the Property Theory, the Information Asymmetric Theory, Transaction cost theory and System of Innovation Theory. Then, this paper discusses the foundation of practice of rural mutual credit cooperative from the need, function and features of rural mutual credit cooperative. Later it analyzes the status of rural mutual credit cooperative and main problems in the development of rural mutual credit cooperative from both internal and external aspects. The main problems include being poverty of cooperative financial awareness for relevant government departments and farmers, the operation of non-standard and Capital source shortage for rural mutual credit cooperative in internal aspect, and being lack of legal status, being poverty of supervision and control, being deficient of guidance and support for government in external aspect. Lastly, this paper Put forward to Suggestions to o promote sustainable development of rural mutual credit cooperative for the current situation and existing problems and learning from Germany, the United States, Japan, the three representative models of rural cooperative financial organization of successful experience, including raising awareness of the importance of rural mutual credit cooperative, adhering to the basic principles of cooperative, protecting legal status to rural mutual credit cooperative through legislation, strengthening policy support ,supervision and management for government.