Study On The Operational Efficiency Of Rural Cooperative Financial Institutions In Jiangsu From The Perspective Of Supporting Agriculture

The problem of "three agriculture",is a major issue concerning the improvement of people's livelihood,economic development and social progress.As the main force of supporting agriculture,the reform and development of the rural credit cooperatives has long been highly valued by the government and the people.From the beginning of 2000,Jiangsu Province as the pilot areas of rural credit cooperatives reform,launched the first active exploration in the system of property rights and management.In the course,the rural credit cooperatives have reformed into rural cooperative banks or rural commercial banks.According to the definition in Guidance on the Classification of the Risk of Non-credit Assets for Rural Cooperative Financial Institutions,which was issued by CBRC in 2007,rural credit cooperatives,rural cooperative banks and rural commercial banks are all called rural cooperative financial institutions.In addition to maintaining their own operational and sustainable development,rural cooperative financial institutions should also undertake the important task of supporting agriculture.Based on rural credit subsidies theory,rural financial market theory,imperfect competition theory and other rural financial theory,this paper studies the efficiency of rural cooperative financial institutions in Jiangsu from the perspective of supporting agriculture.Therefore,this paper firstly constructs the index evaluation system of score of supporting agriculture for Jiangsu rural cooperative financial institutions,then the indexes' weights are given by factor analysis method,the score of supporting agriculture is finally obtained through dimension reduction.Then,in the study of the operating efficiency,this paper constructs the SBM model of non radial,non angle and variable returning to scale,with undesirable outputs,taking net fixed assets,non interest expense and loanable funds as input indexes,credit risk,non interest income,loans and the score of supporting agriculture got from the above evaluation system as output indexes.In the process of researching efficiency,the efficiency of South of Jiangsu area is higher than that of North of Jiangsu area.In this paper,the reason of this phenomenon is explained by the relaxation quantity.Through calculation,the inefficiency degree of input indexes and output indexes of North of Jiangsu area is higher than that of South of Jiangsu area.So,the efficiency of North of Jiangsu area is lower than that of South of Jiangsu area.Next,the factors affecting the efficiency are analyzed by the method of regression.Through a comprehensive study of the rural economy,the level of financial development and scale,stability,profitability ability,allocation ability,management ability,innovation ability etc.that may affect the operational efficiency of rural cooperative financial institutions in Jiangsu Province,which are measured by the county's per capita GDP,market share,total assets,owners' equity,assets income ratio,loan to deposit ratio,cost income ratio,non interest income and other indicators,this paper finds that:rural economic development level,scale,stability,profitability and innovation ability have a positive impact on efficiency,whereas the impact of market share,loan to deposit ratio and cost income ratio on efficiency is not significant.Accordingly,this paper proposes to increase support for agriculture,improve the management level,enhance innovation capability,improve the external economic environment.