A Study On The Development Path Of Rural Credit Cooperatives Under The Model Of Community Banks

As the main force in Chinese rural finance market, Rural Credit Cooperatives (RCCs) play a principal and fundamental role in providing finance support for the comprehensive development of rural economy. In recent years, the exploration about the reform of RCCs has never ceased. Every reform gained a definite phased achievement, however, up to now RCCs are faced with problems such as low management performance and limited support for agriculture, countryside and farmers. Therefore, in view of RCCs' self-existent problems and the influence of external environment, finding a feasible path to transform them into community banks is not only the need to accelerate RCCs' own development and consolidate the dominant position in rural finance market, but the necessary choice to satisfy rural financing demand, optimize rural finance system and structure and promote rural economic development.This paper is composed of five sections. The first section summarizes the theory of community banks and puts emphasis on analyzing the institutional advantage of community banks model; the second section reviews RCCs' all previous reform and expounds RCCs' current development situation; the third section analyzes the necessity and feasibility of developing RCCs into community banks; the forth section points out existent problems in the development of RCCs and analyzes the restrictive factors by which RCCs are hindered from developing into community banks; the fifth section puts forward the path selection and complementary measures of developing RCCs into community banks from different aspects such as establishing scientific property right institution, perfecting corporate governance structure, changing management idea, instituting the development strategy of community finance, perfecting policy support and legal protection system and building external supervision framework and so on.