The Research Of Survival And Reform Of Chinese Rural Cooperative Banks

Building a new socialist countryside is an important historic task in China's modernization process. The reform of rural financial system is urgent when building a new socialist countryside, and is an important task in the reform of financial system in China. Rural Credit Cooperatives (RCCs) are the most important financial institutions in rural financial market of China. But the operating situation of RCCs is not satisfactory. Rural cooperative bank (RCB) is a new type of financial institution in China and has become the first choice when many Rural Credit Cooperatives carried out their transformation. In the areas where market economy is well developed and urbanization level is high, RCBs have shown their advantages. But the financial academic community has different views about RCB. There is contrast between academic negation and the vigorous development in practice. The contrast shows the need of further research.This paper focuses on the RCBs newly-established in China. The paper reviewed the development background and history of rural cooperative banks in China. The paper has study carefully the ownership structure and corporative governance of the RCBs. The writer explored the regulations, collected some examples and compared the RCBs with joint-stock cooperative corporations, rural commercial banks and foreign cooperative banks in respect of the ownership structure and corporative governance. This paper studies current situation and outlook of rural cooperative bank by taking Ningbo Yinzhou Rural Cooperative Bank, the first rural cooperative bank in China as an example. The main study methods of the paper are case study and comparison study.The main conclusions are drawn as follow: RCB is a practical creation of Chinese cooperative financial system. As to the ownership structure, RCBs in China are much like commercial banks in China and far from cooperative banks in other countries as to the ownership structure; the kinds of shares and structure of ownership of RCBs is unstable and will evolve over time. As to the corporative governance, rural cooperative banks have make obviously progress; Rural cooperative banks are much like rural commercial banks in China in respect of corporative governance; Rural cooperative banks in China have established strong restraining and supervisory mechanism, but the restraining and supervisory mechanism within rural cooperative banks is weak.