Research On Cooperative Bank Of Chongqing(1941-1948)

Cooperative Bank of Chongqing, which lasted for a period of seven years, was established in January 5, 1941 and closed in February, 1948. Co-founded by the Chongqing Municipal Government, Farmers Bank of China, the Central Trust of China and China Industrial Cooperation Association, Cooperative Bank of Chongqing was primarily supported and run by Farmers Bank of China. Cooperative Bank of Chongqing, in nature, was different from other cooperative banks set up to solve the difficulty of finance in that it was established to regulate the fund of other cooperatives in Chongqing and to promote the development of urban cooperation. Because of its uniqueness, it is of great significance to carry out a systematic research on it. However, few studies on the Cooperative Bank of Chongqing have been found among the existing academic research. Therefore, choosing Cooperative Bank of Chongqing as the research objective, this paper analyzes the motivations and founders of the Cooperative Bank of Chongqing and discusses the details of its business by collating archives in Cooperative Bank of Chongqing, literature and periodicals during the Republic of China. Based on this, a positive evaluation on Cooperative Bank of Chongqing is carried out, hoping to provide some reference for relevant studies.The Cooperative Bank of Chongqing is a product of an era. Its establishment is closely related to the history when National Government moved its capital to Chongqing. After the Anti-Japanese War began, the capital-moving of National government led to rapid growth in population and rise in price, for which the living condition of workers degenerated.To stabilize prices and production, National Government promoted organizations for consumption and production, which boosted the development of cooperatives in the area. However, in this process, capital bottleneck began to appear, therefore, the Cooperative Bank of Chongqing was set up to meet this challenge. A full-order organization and strict rules and regulations of Cooperative Bank of Chongqing have laid a solid foundation for its nice business from the beginning to the end. Cooperative Bank of Chongqing’s core business is lending to cooperatives, mainly in consumer lending community-based, not only directly grant loans in cash, in-kind grant loans also founded the business, to some extent alleviate the financial needs of cooperatives and promote the development of the cause of cooperation. At the same time, Cooperative Bank of Chongqing also focus on deposits in order to open deposits, savings business, overdraft loans and other ways to make a substantial increase in the amount of deposits, demand deposits, however, mostly government agencies and organizations, to carry out limited the lending business. Nevertheless, Cooperative Bank of Chongqing before the war can still be a surplus, is very good. However, the lending business was limited due to the fact that many of the deposits were current ones belonging to government agencies and organizations. Thus, it can be seen that there were both improvement and insufficiency in the development of the Cooperative Bank of Chongqing. The fact that these problems remained unresolved and the capital of national government removed back to Nanjing in 1946 weakened the development of Chongqing cooperatives, which further resulted in the incorporation of Cooperative Bank of Chongqing into the Central Cooperative Bank of Sichuan branch in 1948.By examining the motivations and business conditions of the Cooperative Bank of Chongqing, it is not difficult to find that the development of the Cooperative Bank of Chongqing relied mainly on the government and the banks or bureaus controlled by government. The deficiency of it lies in both the limitation of social-economic situation and its heavy reliance on government organizations.This tells us that the implementation of any system or organization should be self-reliant because they are based primarily on their own and partly supplemented by external forces. The relationship among the government, society and individuals must be correctly handled, which particularly means that the government intervention should be moderate. Also, the development of any organization requires both a good social environment and also favorable opportunities.