Research On Operating Efficiency Of Rural Credit Cooperatives In The City Of Xinxiang

As multitudinous financial institutions in China, RCCs are rural cooperative financial institutions with long history, many networks, larger area service and distinctive characteristics. The significance of the systematic study on RCC’s operating efficiency lies in the facts that:First,RCC’s sustainable operation is the need of the solution to"Sannong, ie:rural, countrymen, agriculture". Second, the improvement of RCC’s operating efficiency is the basic requirement for RCC’s sustainable operation. Third, RCC’s are basic force to support agriculture, Only by strengthening the RCC’s operating efficiency construction can we eliminate the operation risk once and for all, and can we put an end to the low efficient operation status at present RCC’s suffer in rural financial markets, and we better the service so as to solidify the basic status of agriculture and to increase the farmers’ income. Fourth, the foundation and improvement of modern rural financial enterprise institutions would be impossible without the construction of RCC’s comprehensive operating efficiency. Henan is a big agricultural province.By research on RCCs’ operational efficiency in the city of Xinxiang and its influencing factors, we can give future reference about RCC operations and also provide reference for the RCCs’ development. This paper studied RCCs’ operational efficiency in the city of Xinxiang and its influencingfactors which was based on sustainable development theory, household lends behavior theory, scale economy theory an so on. Firstly, this paper analyzed RCCs’ internal structure, operational status and the situation of household lending and borrowing money. Secondly,based on some financial statements,it used DEA model to measure RCCs’ operational efficiency and analyzed the adjust directions for improvement to inefficiency decision making units. Then, this paper analyzed factor impacting RCCs’ operational efficiency by using multiple linear regression and understanded direction and size of main factors.Through the analysis of the above aspects, this paper concluded that the following conclusions:(1)Xinxiang RCCs’in general runs well last decade.More than half of years, the overall operating efficiency was one,means that there was the best inputs and outputs. There was the ultra efficiency value phenomenon in this years through extending DEA model.(2) The phenomenon, that RCC is ineffective, caused by invalid size.By calculation,we know it would maximize the output above the original size through artificial wages and benefits,interest expense and net fixed asset can adjustment to reduce fifting percet in this six years with invalid size.(3) The overall efficiency of RCC in the city of Xinxiang affected by many factors, this paper analyzes three key factors which are the employees wages and benefits, interest expense, net fixed assets.Through the various input factor on super efficiency value of multivariate linear regression, it can be concluded that, interest expenses increased1%will reduce the efficiency of rural credit cooperatives0.38%; net fixed assets increased by1%, will increase the efficiency of rural credit cooperative0.2%. Therefore, a negative interest for rural credit cooperatives efficiency elastic, elasticity is positive for rural credit cooperatives efficiency of fixed assets, interest expenditure on rural credit cooperativesefficiency contribute to more spending on fixed assets. In view of the above conclusions, this paper argues the following advises.(1) Optimize the structure of rural credit cooperatives invested. The RCC, while maintaining the original premise of the sizes, appropriate to reduce the investment proportion. RCCs’loans in the classification method is "one overdue two bad", which sounded the alarm to RCC still using " one overdue two bad ";(2) The farmers should study credit knowledge. Saving loan officers loans to farmers and RCC as well as time and effort, also eased a lot of ills brought by information asymmetry;(3) The Government should give RCC further reduce bad debts reserve deposit, lowering taxes and reducing the loan interest of less.