Research On The Reform Model Of Agricultural Credit Cooperatives In Hainan Province Under The Background Of Free Trade Port

As a special organization for rural areas and farmers,the rural credit cooperatives’ establishment not only can promote social construction and local economic,boost agricultural and rural development,but also has great significance for the soundness of rural financial markets and the enrichment of financial products.In 2003,China began to implement the overall institutional reform of rural credit cooperatives,and mainly focusing on system changes and the solution of problems left over from history.In August 2007,Hainan Rural Credit Cooperatives started the reformation,how to optimize the system of rural credit cooperatives,and how to continue to deepen the reformation of rural credit cooperatives has become a major proposition.On April 13,2018,General Secretary Xi Jinping announced the start of building Hainan Free Trade Port.In June,2020,a master plan has been drawn up for the development of the Hainan Free Trade Port.The plan clarified polices for Hainan Free Trade Port,including “Facilitate the flow of funds for cross-border trade and investment”,“Expand financial opening up to the outside world and accelerate financial reform and innovation”,and so on.The development of Hainan’s financial industry has ushered in an unprecedented opportunity,and the development of Hainan Free Trade Port also needs a strong local financial institution to support the high-quality development of the regional economy.Hainan Rural Credit Cooperatives is a local bank with the largest credit volume,the widest business coverage and the largest business scale in Hainan.At present,the drawbacks brought by the provincial union model have hindered the development of Hainan Rural Credit Cooperatives,which include using bureaucratic system,the problems left over from history are difficult to solve,and facing the pressure of risk prevention.These problems have made it difficult for Hainan Rural Credit Cooperatives to maximize the supports for the construction of Hainan Free Trade Port.This article starts with the reform and development of Hainan Rural Credit Cooperatives,analyzes the existing problems and causes,summarizes the experience and shortcomings of the achievements of the reform since 2007.By analyzing the characteristics,strengths,weaknesses,and applicability of four models,including unified corporation,financial holding company and so on.In addition,this article expatiates on the opportunities and challenges brought by the external environment such as the construction of Hainan Free Trade Port and the development of the banking industry,combined with the comparison of the restructuring results of Chongqing Rural Commercial Bank and Yellow River Agricultural Commercial Bank,and using the AHP analytic hierarchy method,it is concluded that: The reform model with unified corporation is the optimal way for Hainan Rural Credit Cooperatives under the background of building Hainan Free Trade Port,which is in line with Hainan’s special management system and the policy background of building Hainan Free Trade Port.It is conducive to thoroughly solving the historical problems of Hainan Rural Credit Cooperatives,preventing and resolving financial risks,and helping to optimize and strengthen Hainan Rural Credit Cooperatives.This article puts forward countermeasures and suggestions for the reforming implementation plan of the establishment of provincial rural commercial banks.