Henan Rural Credit Cooperatives Governance Structure Optimization Strategy

The financial sector is the core of economic development because of its special nature and role,broadly and deeply linking with the market economy in the various subjects of interest.Rural credit cooperatives are financial institutions to serve local economic development,transferring funds from remaining places and creating credit to promote economic development.Henan rural credit cooperatives established in the early 1950s,as the most important factor of co-finance,Rural credit cooperatives play an important role in promoting rural economy to reform and develop.At present,the reform of Rural credit cooperatives in Henan province has come into an critical period,so the optimization of governance structire becomes the first thing to do.This paper studies Henan rural credit cooperatives combined with RCCs situation,analyzes its governance structure from both intermal and external factors,raises a more complete presentation of the Rural Credit Cooperative Governance optimal design and strategy.Firstly,this paper analyzes its current governance situation from both internal and extermal,proposes many problems existing in management system,checks and balances,ownership structure and other aspects.Secondly,this paper analyzes from the external governance and internal governance two aspects,in order to optimize the management of rural credit cooperatives in Henan Province.External governance analysis is mainly from the policy environment,regulatory framework,stakeholders,and several other aspects.Internal governance analysis is mainly to optimize the design of internal governance and internal management.Finally,this paper proposes Rural Credit Cooperative Governance implementation strategy combining various factors,such as' incentive pay,strengthen management and supervision.