A Study On The Performance And Institutional Innovation Of The Rural Cooperative Finance In Western China

Being regarded as the formal organization of the rural cooperative finance, the Rural Credit cooperatives (RCCS) have played a crucial role in rural finance. During the long process of development, "alienation" has taken in RCCS. Especially, the Western RCCS have already sunk into the poor situation. It is important for Western RCCS how to relate with the development level rural economy in the region, to choose a suitable property rights institution and to take the responsibility of supporting the agriculture, the village and peasants through institutional innovation.In according with the contradiction of the rural cooperative finance in western China, the paper analyzes the finance system, the performance and the institutional shortage, puts forward to some ideas of institutional innovation through using the theory of regional Economics, finance and so on, keeps the trace of the unbalance of the rural economy and adopts some methods such as the normative analysis, comparison analysis and evidence analysis etc.Chapter 1 is the section of theory, which is the foundation for this full text. It elaborates the concept such as the cooperation, cooperative economy and the rural cooperative finance, and points out the characteristics and the transitions of the cooperative finance.Chapter 2 indicates that the peasant household in western areas is on the transitional stage from the righteous household to the rational household through the analysis of the borrowing characteristics for the peasant household and economic characteristic in western China, and points out that cooperative system is a rational choice of property rights institution for the western RCCS.Chapter 3 is about the analysis of performance. We can draw some key conclusion through analyzing performance. For example, With regard to the efficiency of performance, the western RCCS have indeed played a crucial role, while the level of supporting the rural is low; One of the key reason why borrowing is difficult for peasant is that RCCS excessively emphasis on the collateral and the guarantees, not on selecting high-quality customer through making use of the information advantages; With regard to the development efficiency, one of the important reasons for deficiency is the high expenses of one person; With regard to the efficiency of financial intermediation, the rate of mobilizing deposit and financial intermediation is higher than that in central areas.Chapter 4 is about the analysis of the institutional shortage. For example, property right is vague; Governance structure is disorder and so on.On the basis of analyzing performance and institutional shortage, chapter 5 puts forward to some ideas. For example, building inner-controlled management system for peasant, agriculture and village under the foundation of property right structure etc.