Rural Financial Institutions Merger Restructuring And Effects Analysis

Both theory and practice of the reform of financial illustrated that carried out financial institutions shareholding reform was an important path to promote rural financial institutions and domestic and international modern financial enterprise, the road of merger restructuring setted up rural commercial bank was that under the new situation adapted to rapid economic development and social of Donggang and Lanshan rural credit cooperatives,they were in the face of intense competition in the financial markets,and made the situation a reasonable choice.By using comparative analysis, normative analysis and empirical analysis with the combination of research methods in this paper.This part elaborates from three aspects.First was Shandong province and the national policy basis,then the Donggang district and Lanshan district economic development, the basic conditions of Rural Credit Union, combined with the restructuring of the necessity and feasibility of system analysis.The results showed that Donggang and Lanshan districts adapted to the development trend of financial enterprises.In the national and provincial government policy support, according to its own development, choose merge for the restructuring of the rural commercial bank road for them were necessary and feasible.To forecast the effect after the restructuring,the governance structure, carried on the contrast to the four aspects,they were property and ownership of rural credit cooperatives and rural commercial banks, market positioning and business objectives, principal-agent, incentive and restraint mechanisms.Then systematically analysis the governance structure,through the use of financial indicators and the cooperatives analysis showed that the requirements were connected to form a bank are up to standard.Rural commercial banks could operate normally in the operating mechanism.Secondly,The distribution of rural financial institutions and the system were more reasonable and perfect, they could satisfy the need for more households and other customers by financial reform.Although the expected effect was ideal, but there were some problems at the beginning of merger.For example, due to not adapt to the operating mechanism after reform, ABC may have problems of profitability was not strong, business innovation and human resource were not sufficient.This paper posed that improved the governance structure and increased support for agriculture to solve problems from two aspects.In the governance structure aspect,we should further improve external environment and internal circumstances, strengthen the exchanges and cooperation between banks.For the aspect of how to increase the support about agriculture, we had the suggestions to consummate the outlets, intensify support agriculture credit, innovation, innovation service system and other measures.