Countermeasures Of Rural Credit Cooperatives To Deal With Villages And Towns

Village bank in China was first established in2006.It’s aimed to optimize the rural financial market of China, open up closed market to competition, and improve the rural financial environment, in order to achieve the national policy of inclusive finance. Prior to this, the rural credit cooperatives in the rural financial sector had ruled the rural financial market for over thirty years, which laid the foundation for the development of China’s rural finance roads, but also highly controversial. The improve of The market mechanism needs the introduction of competition, which can improve the market mechanism.Although the village bank cannot match with the rural credit cooperatives for now, but its inherent advantages and its mechanism of management is enough to cause alarm.The "Sponsor System" of village bank can bring many advantages than rural credit cooperatives.Furthermore, the independent legal person management system of village bank, and its simple and flexible internal organization, are both the challenge for the rural credit cooperatives, which is becoming more huge and traditional. In the increasingly competitive environment, the challenge from the village bank is just a part of it, more forms of organization will gradually join into the competition of the financial market. Rural credit cooperatives should far-reaching plan and actively respond to these challenge, in order to gain a firm foothold.First of all, the reformation to meet the challenge, should start from the equity restructuring, clarify the authority between general meeting of shareholders, board of directors and board of supervisors, improve and perfect the corporate governance, in order to effectively motivate and stimulate the vitality of the organization. Secondly, rural credit cooperatives should re-examine themselves and the market, identify their own position, do the specialized banks, and put their main resources in the20%customers who create80%profit for the bank. Furthermore, Rural credit cooperatives should seize the trend of big data, in-depth excavate the rural financial resources to first-mover advantage. With the first mover advantage, rural credit cooperatives need to innovate their rural financial products, take rural business platform as a breakthrough, hold the financial wave of the Internet in rural financial markets, and actively respond to the new challenges of village bank.