Research About The Development Of Jilin Province Rural Credit Union

The Rural Credit Union in Jilin Province has made a great contribution to thedevelopment of the rural finance. By the end of2011, the size of its assets (2,068billion, an increase of20.9%, accounting for15%of the financial institutions in theprovince), the loan balance (1,012billion, an increase of10.2%, accounting for18%of the province’s financial institutions), agricultural loans (580billion yuan,accounting for46%of the financial institutions in the province), the number ofbranches(43) and outlets(1620) of county level and the number of employees(22,000) are ranking the forefront of financial institutions in Jilin Province. TheRural Credit Union in Jilin still has a large progress space. First, the customer basehas large room for growth: there are300million urban and rural customers in JilinProvince Rural Credit Unions, by the end of2011, only occupying11%of the totalpopulation. Second, provincial association gradually decentralizes managementpower into the middle and back office services institutions, which gives rural creditunions recovery of independent operation ability. Third, the recovery ability ofnon-performing loans is gradually increasing and the credit rating system is steadilyestablishing. Fourth, the construction of electronic and personnel is still in its infancy,and product diversification trend is beginning to show, the business level of ruralcredit unions also has the very big room for growth. Therefore, to study the problemsof rural credit unions in Jilin Province has important theoretical and practicalsignificance. This paper systematically provides the development of rural creditunions in Jilin Province, and analysis of the problems and the reasons of the ruralcredit unions in Jilin Province, and based on that it puts forward suggestions on the further development of rural credit unions in Jilin Province.This paper consists of the following components:First, literature review summarized the views of domestic scholars about theproblems of rural credit unions. Scholars focus on the influences by policy, propertyrights, management structure, risk rating, tax incentives and other factors for ruralcredit unions, and analyze in modern rural financial development throughinstitutional innovation, by virtue of tax incentives to change the direction of credit,improve credit system, strengthen the management of capital and improve thestrength of their business, strengthen the scientific and technological means to effect,providing simplified financial products, such as ways to promote the businessdevelopment of the rural credit unions.Second, the historical evolution of the rural credit unions in Jilin Province. Thepaper summarizes evolution of Jilin Province Rural Credit Unions since thefounding of the historical background, in accordance with the Jilin Province RuralCredit Unions trial founded stage-Jilin Province Rural Credit Unions unifiedmanagement stage-stage of deepening reform in rural credit unions in Jilin Provincehistory analysis, analyzing each stage of assessment, organizing the thoughts,pointing out that the characteristics of the evolution.Third, the development status of rural credit unions in Jilin Province. The paperanalyzes the status of the rural credit unions in Jilin Province, in accordance with therelevant information and data to identify the existing problems and the reasons for,and make policy recommendations to provide a realistic basis for the later.Fourth, Suggestions on the development of rural credit unions in Jilin Province.On the basis of analysis of the problems of rural credit unions in Jilin Province, thesuggestions put forward to the further development of rural credit unions in JilinProvince, namely: improving of electronic technology service system, transformingthe functions of the provincial association, strengthening the control of operational risks, innovating farmers credit evaluation criteria and to improving the quality ofthe existing staff.