Research On The Competitiveness Of Rural Credit Cooperative Union In Minqing

As an important part of financial system and the main force of rural financial services in China, Rural Credit Cooperatives (RCCS) have played a positive role in meeting farmers’financing needs, supporting small-and medium-sized enterprises’ development and accelerating rural economic growth. They have made a great contribution to developing agricultural economy and rural economy as well as increasing farmers’income by improving credit services and increasing agricultural investment in recent years. Minqing RCCS is a corporation in Minqing County, a typical mountainous agricultural area in Fujian Province. How to improve the comprehensive competitiveness of Minqing RCCS is an important subject with theoretical and practical meaning.On the basis of literature review, this paper summarizes the social-economic conditions of Minqing County; gives an overview on the development process of Minqing RCCS; states the nature, position, function, characteristics of RCCS in counties; analyzes the concept, components, basis and conditions of competitiveness of these RCCS; and points out the competitiveness consists of recessive parts and dominant parts.In chapter 4, for estimating the dominant competitiveness, this paper firstly constructs the evaluating indicator system with 23 indexes in 5 facets of profitability, development ability, management safety, liquidity and market share; then determines index weights by Analytic Hierarchy Process; makes dimensionless processing by Range Normalization Method; and finally evaluates the competiveness. The results of evaluation are shown as follows:the management safety and the profitability was improved yearly from 2006 to 2012; the development ability was greatly strengthened in 2009 and then was stabilized at a high level; the liquidity had been increasing almost yearly since 2008 while decreased progressively from 2006 to 2008; the market share had declined yearly in pace with the intensive competition from four state-owned banks, the Channel Bank and the Postal Savings Bank.Generally, the dominant competitiveness of Minqing RCCS was enhanced constantly. It was promoted rapidly from 2008 to 2011 while it slowed down from 2011 to 2012, and maintained at a high level. In the process of comparison among financial institutions in Minqing County, this paper makes an overall evaluation on the respective competitiveness from 2006 to 2012 by Factor Analysis Method. The analysis shows that Minqing RCCS ranked the first each year except 2007 (ranking the second).In chapter 5, this paper concludes that Minqing RCCS possesses better foundation, stronger capability and higher level of competition, in comparison to other financial institutions in Minqing County, from aspects of corporate governance structure, internal control regulations, innovation ability, information technology and inner talent team.At the end of this paper, policy implications and countermeasure suggestions are put forward from the perspectives of recessive competitiveness and dominant competitiveness, based on all the research above.