A Study On Chinese Rural Credit Cooperatives' Reform Path

On the basis of the absence of underlying finance and the strong appeal for the development of communities finance, this paper focused its eyes on the way in which how communities finance entered into the market. There are three opinions in the finance academia. The first opinion is that the communities finance should be set up by the capital of privately-owned corporation. The second opinion is that the existing city banks and RCCs should be transformed into communities banks. The third opinion is that we should lead civilian finance to be developed into communities finance. I agree to the second opinion and think that transforming RCCs into communities finance is consistent with the new reform path of RCCs. It helps to lead RCCs to get out of the hot water and walk on a continually growing road. Probing into the inevitability of the reform of communities finance mode and the way we can realize it are just the purpose I wrote the paper for.Firstly, I stated the reform processes and the current situations of RCCs and then analyzed some difficult problems, such as the dilemma of the cooperation and the commercialization of RCCs, hardly concoctive multi-objectives, the contrast of the monopoly status and the external capability and so on. Then I presented the inevitability of transformation from RCCs into communities finance mode. It helps RCCs to strengthen their general competitive power, resolve the conflict between governmentlization and commercialization, walk out of the management hardness, enlarge RCCs'market shares, realize multi-levels market orientation. The policy advantage, the management system advantage, organization branch advantage and abundant experience helped to turn the ideas into reality. A communities bank with good mechanism will be good at serving middle-sized or small-sized enterprises and individual clients. It has some advantages in efficiency, orientation, location, centralized management and internal governance compared with large-sized banks. Communities finance satisfies the multi-level demands of local economic development and local inhabitants. This is the theoretical foundation of this paper. Lastly, I took some suggestions about how to reform RCCs into communities finance.