China's Rural Credit Union Funds To Development Problems

As ours rural economic system reform and development,rural economy is on a traditional agriculture,modern agriculture,diversified industrial and commercial development pattern,the farmers'demand for finance have also shown a plurality and hierarchy,while formal financial institutions can not meet the demand for finance in rural areas。After the state-owned commercial Banks comprehensively withdraw from the rural areas,the rural credit cooperative(RCC)have become the only major formal financial institutions in rural finance market,However,RCC'S reform is growing more and more commercial in rural areas,not only had changed the nature of cooperation,and because of its limited capital,and can not assume the task of meeting the demand for finance in rural areas。In order to change less formal financial networks,shortage financial supply,insufficient competition in rural areas,the CBRC on 22 December 2006 issued"Opinions about relaxing on access policy of banking institutions in rural areas and better support the building of new socialist countryside",allowing the industrial capital and private capital to newly established three types of financial institutions in rural areas,which including Village Banks,Loan Companies and Rural Mutual Funds Cooperatives。It is the first time for opening comprehensive rural financial markets。22th January,2007,the CBRC issued"Interim provisions on the administration of Rural Mutual Funds Organizations",and proposed detailed provisions about establishment,organizational structure,stock rights management,operating management,supervision management and so on。This shows that our country believe Rural Mutual Funds Cooperatives can meet the demand for areas of farmers to ease imbalance between financial supply and demand in the rural areas。But Rural Mutual Funds Cooperatives in our country are still in the phase of exploration and facing many problems。So this paper is based on the domestic to find out the cause and importance of developing Rural Mutual Funds Cooperatives by Analyzing of the imbalance of rural formal financial market between supply and demand of loans in rural areas。And shows the feasibility of developing Rural Mutual Funds Cooperatives by contrast analysis。In this paper,i elaborate common and major problems arising in the development of Rural Mutual Funds Cooperatives and put forward to some creative suggestions。I hope that these suggestions have some reference value for the development of Rural Mutual Funds Cooperatives。...