A Research On Restructuring Problems Of Rural Credit Cooperatives

China has always been an agricultural country, in which agriculture is the foundation of other industries. Rural financial environment acts as a necessary part of China’s financial environment, great importance has been attached by the government to developing rural economic and improving rural financial environment. Rural credit cooperatives have become the main force in serving rural economic and farmers since the CPC Central Committee decided to pilot rural credit cooperative organizations on the First National Financial Work Conference in1951. It has been more than sixty years since the first rural credit cooperative established in China. With China’s accession to WTO and the development of socialist market economy, the rural credit cooperatives are facing lots of challenges and difficulties in the management and development.Since reform and opening up to the outside world in1979, the government has recognized the necessity of reforming rural credit cooperatives and then conducted a number of reforms on rural credit cooperatives. Rural Credit Cooperatives and Agricultural Bank decoupled in1996, since then rural credit cooperatives owned independent legal personality. However, the rural credit cooperatives are facing many development problems such as unclear property rights, chaotic governance structure, lagging business philosophy, low awareness of financial services and so on. In this article, the author summarizes the patterns of foreign countries which have matured rural cooperative financial system, then, it analyzes the current situation of China’s rural cooperatives. Then, the author explains why the rural credit cooperatives have to restructure to rural commercial banks. In addition, the author gives some suggestions on rural credit cooperatives’ restructuring, and how to improve their governance structure, information systems, human resources management, ideological construction, risk prevention and so on. Finally, the author also points out what the government and the supervisor department should do to help the rural credit cooperatives restructure to rural commercial banks and to help the rural commercial banks develop more scientifically and sustainably.