Research On The Commercial Reform Of Rural Credit Coorperatives In North Jiangsu

The reform of rural credit coorperatives is an important part to the reform of rural financialsystem. The rural credit coorperatives have reformed many times since the fundation of ourcountry, and there are some periodical results in the reform after the project of "makingexperiments for the reform of the rural credit coorperatives" in2003. With the acceleration inthe integration of the rural and urban areas, four state-owned commercial banks’ branches arecontracted as well as the agricultural structure adjustment, the rural credit coorperatives arebecoming the most important institutions in rural financial area, so they must speed up thereform and innovation of property rights mode. But it still remains some problems due to theheavy historical baggage and the internal management problems.JiangSu is one of the experiment province and the rural credit coorperatives are the mainsupply institutions in the rural financial area,so rural credit coorperatives are very important tothe development of agriculture in JiangSu. Due to the importance we need to know therelationship between rural financial development and the growth of agriculture economy first.We should know which mode they belongs to, could it be "supply-leading" or"demand-following" mode. Study on this can provide the theoretical and empirical support forour study.Secondly we should know the difference between south and north JiangSu. It isobviously that the reform of rural credit coorperatives is successful in South Jiangsu.ZhangJiaGang rural commercial bank, ChangShu ruranl commercial bank and JiangYin ruralcommercial bank are the best samples for other areas to learn from. But as for North JiangSu,there are some perticular situations needs to be considered. North Jiangsu is the nationalimportant agriculture production base which occupies the important position in JiangSu. Sohow to reform the rural credit coorperatives are important to the development of agriculture andagricultural structure adjustment as well as the improvement of living standard of farmers. Theaim of this reform is to clarify property rights, improve management and support agriculture, atthe same time it should follow the principle of suit one’s measures to local conditions. In recentyears, the reform direction is nearly confirmed as shareholding system reform due to the paperswhich are issued by CBRC. The rural credits coorperatives must slow reform and combine withtheir own actual situation. If they blind persuit the aim of shareholding system reform andignore the rights of agriculture and farms, the results of reform will run counter to the aim ofreform. This study will take L rural commercial bank as example to anaysis the reasons, process,reform mode and the evaluation of reform and try to offer some suggestions.This article is devided into seven chapters.The first chapter is preface.It introduces the topics of background and significance, reviewof the literature on rural credit coorperatives, research framework, research method, innovationand shortcomings of this article. The second chapter is mainly on the related theory. It contains the theory of financialdevelopment, cooperative finance theory, modern financial theory and institutional changetheory, which can provide a theoretical basis for the reform of rural credit cooperatives.The third chapter learns the empirical analysis of the relationship between the ruralfinancial development and the economic growth based on VAR, and we find it belongs to the“demond following” mode which is laid the fundation for the next research.The fouth chapter introduces the background of the reform of rural credit coorperatives inNorth Jiangsu. It exponds the history and the reason of the reform in north Jiangsu, and alsostudy the south–JiangSu mode. This part also study on the difference between South and NorthJiangsu, which implies us that north-Jiangsu, cannot copy the mode of South-Jiangsu blindly.The credit coorperatives in north Jiangsu should take it slowly and have a plan when they arereforming.The fifth chapter takes the L rural commercial bank as an example to learn the reason,process and present situation of the reform of rural credit coorperatives.The sixth part evaluates the reform performance of L rural commercial bank. It containsthe evaluations of supporting agriculture, organization system and business management.The seventh part offers some proposals based on the above research and summarized thewhole paper.