The Study On Supporting Rural Economic Development Of Funing Rural Cooperative Bank

How to improve national economic development and to build a well-off society is the fundamental problem of rural area, agriculture and peasants. The shortage of fund is one of the key factors which has restricted the development of rural area, agriculture and peasants for a long time. As an important component of the modern rural financial system, rural cooperative finance plays a noticeable rule in the national economic development and the livelihood of people. Economic decides the finance and the finance services to the economy, it will provide a powerful fund supporting for the rural economic development when the cooperative finance, a department of resources distribution, adjusts to the rural economic needs from the worldwide perspective. Rural cooperative bank which is one of the chief pattern of cooperative financial organization plays a great role in the serving of agriculture.The reform of China’s rural financial system is going more and more deepen since the reform and opening up for30years but it’s still imperfect, To some extent, it’s incompatible to the development of rural economy and the needs of building new socialist countryside that has restricted the development of rural economy.Due to the business features, State-owned banks and Policy banks, including Agricultural Bank of China and Agricultural Development Bank of China, have cut down their support to "Three Rural"---rural area, agriculture and peasants. Business of such banks has gradually directed toward cities and enterprises in large and medium sizes and key projects. Branches of agricultural cooperative financial institutions have spread over cities and rural areas, which yet all the time stick to the goal of serving "Three Rural". As the Commercial finance gradually fades away and the functions of policy finance have constantly weakened, there are rather few financial institutions serving countryside and towns. Agricultural cooperative finance then will become the significant financial service platform to support the substantial development of rural economy and perform an important role in supporting agriculture.In order to effectively solve problems in financial service to "Three Rural", the State Council published "Program on Further the Pilot Reform of Rural Credit Cooperatives" in August2003, which triggered a new round reform of rural credit cooperatives. Funing cooperative bank was one of the major models applied in the reform. According to the requirements provided in the Program on Further the Pilot Reform of Rural Credit Cooperatives and based on its own situations, Funing cooperative bank, having its equity structure and management optimized, was established in2006, so as to be adapted to the current trend of reform and development, to support better the development of rural economy.FuNing county who is famous for its agricultural production in YanCheng city has raised the economic development to new level in recent years. With the development and constant self-perfection for several years, the FuNing cooperative bank, transforming from rural credit union, has adopted a series of measures to support the rural area, agriculture and peasants after its reform and has played a more and more important role in promoting all-round development of the rural economy, readjusting of rural industrial structures, transforming the ways to achieve economic growth, achieving sustained, rapid and healthy development, increasing the income and material base of people’s living, and has achieved remarkable effects especially in exploiting and utilizing new energy, building green ecological countryside, improving social comprehensive benefits.Rural cooperative finance is an effective attempt for the reform of rural financial system. On account of the complexity of China’s rural issue, there are still many ambiguous problems in property relations, corporate governance structure, integration service function, business development level, risk management ability, technology support strength, the staff comprehensive quality and human resources for FuNing rural cooperative bank.In view of the needs and problems in the development of rural economics, many further improvements and betterments should be adopted to perfect the corporate governance structure, to improve the ability of performance, to accelerate development, to enhance the strength of serving rural area, agriculture and peasants, to create distinctive feature products, to advance comprehensive service function and management level, to cultivate multi-layer talents, to establish and perfect risk management system, to guard against financial risks in an all-round way and to better service the development of local economy.