A Research On Sustainable Development Of The Rural Mutual Funds

The rural financial problem has been a hot issue in the academic circle. For a long time, due to the influence of the factors such as the information asymmetry, small-scale and decentralization on funds demand for farmers, the lack of necessary pawn and so on, lots of commercial financial institutions have evacuated from country, farmers' financing needs is unmet, the contribution of the rural economy to GDP and financial services for the rural economy is serious asymmetrical. Developing rural cooperative finance is an effective way to solve rural financial distress, however the development of cooperative financing is tortuous, Rural credit union have lost cooperative function, Rural cooperative fund has disappeared. In 2007, the emergence of Rural mutual funds brought the hope to cooperative finance, resolved the problem of farmers' financing difficulties and promoted agriculture economy's development. Rural mutual funds have developed rapidly in recent years, and there have been five thousand Rural mutual funds until 2010. However, considering experience of Rural credit union and Rural cooperative funds, it is necessary to study sustainable development of Rural mutual funds. At present, the research about Rural mutual funds mainly focus on definitions, functions, principles and problems, however the research of sustainable development of Rural mutual funds is less, so this article pays more attention on sustainable development of Rural mutual funds through some cases.This article divides the problem of sustainable development of the Rural mutual funds into three meanings:the premise is survival, keeping cooperative nature is the security, perfect endogenous environment is the source. Through typical case analysis and comparison, the article summarizes the survival dilemma of the Rural mutual funds, reasons of transformation of the cooperative natures and lacking endogenous environments, then puts forward the corresponding countermeasures to promote the development of Rural mutual funds.There are seven chapters in the article, the first chapter is foreword, mainly introduces the research background, significance, ideas and content framework. The second part is about the research status of Rural mutual funds. The third part mainly introduces the background and development situation of Rural mutual funds so that we can get overall cognition of Rural mutual funds. The fourth chapter explores the natures of Rural mutual funds through typical case analysis. In the fifth part the author analyzes survival problem of Rural mutual funds. Finding the survival dilemma of Rural mutual funds through contrasting the Rural cooperative fund case and the Rural mutual fund case, then proposes the solution countermeasures. The sixth chapter studies on how to keep the cooperative nature of Rural mutual funds. This part analyzes a Rural mutual fund corporation which exist nature changing tendency, and gets the conclusion of the reasons of nature changing tendency. The seventh part is the research of the endogenous environments of Rural mutual funds. This chapter concludes the meaning of endogenous environment, the advantages of the Rural mutual funds which generate in endogenous environments, reasons of lacking endogenous environments, and the corresponding countermeasures.According to analysis all above, the author concludes that:The survival dilemma which the Rural mutual funds face mainly reflect in the undefined legal status as well as the imperfect internal risk control system; Lacking funds is the root cause which make the properties of Rural mutual funds tends to alienation. The difference of farmers' production range lead to the shortage of the funds inevitably, therefore absorption of savings become a general way to solve the problem, but absorbing savings result in alienation of properties at last; The main reason for the imperfect endogenous environment of Rural mutual funds is that the error understanding of cooperative economy have existed in our country for a long time. In order to keep sustainable development of the Rural mutual funds, firstly, speeding up the construction of legislation and establishing multi-layer legal system make certain Rural mutual funds can be survival; Secondly, innovating fund solution is necessary to keep nature unchanged besides solving funds problem; Finally, establishing multi-layer education system is indispensable to perfect endogenous environment.