A Research On The Development Of Rural Credit Cooperatives In Kunming From The Perspective Of Internal Management

Finance is the core of modern economy and rural finance is an integral part of the financial system. As the fundamental system for allocating capital elements in the development of rural economy, rural finance plays a significant role in solving the problems concerning China's country, agriculture and farmers. Rural credit cooperatives,as the main force of rural finance and an important link with the mass, have been playing an crucial role in the development of agriculture and rural economy, as well as the building of socialist new country. Especially, since China's reform and opening up to the outside world, rural credit cooperatives, oriented towards serving the rural areas, agriculture and farmers, meeting the credit demands of enterprises of small and medium sizes and promoting the development of agriculture and rural economy, have become the main force in serving the country,agriculture and farmers.Since the establishment of Peng Lai Rural Credit Cooperatives, the first of its kind in Kunming in 1952, great achievements have been made in the reforms and development of rural credit cooperatives in the city, with the system being constantly improved, the scale of operation being on the rise and outstanding effect in serving the country, agriculture and farmers. To date, the cooperatives have taken an important share of the market. Meanwhile, we should be fully aware of the drawbacks existing in rural credit cooperatives,including indistinctness on property right, inconformity between rights, responsibilities and profits, low efficiency in internal management; formalistic democratic management; weak supervision and restriction, diffused legal persons which hampers large scale operations; weak risk proof capacity stems from small capital scale; aging and low education level of the staff; simplex business structure and backward creativity of financial products etc.Under current circumstances where Kunming is experiencing a golden era for economic development, the reform and innovation are about to make breakthroughs, opening up and reform are accelerating, cultural undertakings are prospering, and the society is transforming with accelerated industrialization, informationization urbanization, marketization and internationalization, rural credit cooperatives are confronting with more rigorous requirements in terms of their development.Considering the status quo of rural credit cooperatives in Kunming and by using SOWT analysis and case analysis, it is suggested in the paper that rural commerce bank should be the development direction for rural credit cooperatives. Countermeasures and proposals are also put forward for the development from the perspectives of property right and internal management.