Retrospect and Reconstruction of New Rural Cooperative Finance

Three stages of Rural Cooperative Financial Reform in China

In the first stage, from 1997 to 2003, commercial banks gradually withdrew from rural areas, the Agricultural Development Bank evolved into policy institutions dedicated to the purchase of grain, cotton and oil, and rural cooperative finance was either alienated or closed. In this case, there are doubts about the survival soil of cooperative finance in theory.

The second stage is from 2003 to 2013, when large banks rebuilt agriculture, rural areas and farmers or small and medium-sized micro-financial departments, and new financial or quasi-financial organizations such as village banks, small loan companies, financing guarantee companies, mutual aid unions and other financial organizations developed.

The third stage is from 2014, the central document No. 1 once again put forward a new type of rural cooperative finance. On the basis of managing democratic, standardized and dynamic farmers' cooperatives and supply and marketing cooperatives, we should cultivate and develop rural cooperative finance and constantly enrich the types of financial institutions in rural areas. We will adhere to the principles of membership system and closeness, and promote the development of community-based mutual fund organizations in rural areas on the premise of not absorbing, saving, lending or paying fixed returns. This affirms the role of cooperative finance in the rural financial system.

The re-proposal of the new rural cooperative finance can make up for the deficiency of rural financial services to a certain extent. If rural finance wants to play a role, we must consider the basic characteristics of rural economy. With different stages of rural economic development, the rural financial demand is also different, and the corresponding rural financial supply system should also be changed. Based on the characteristics of China's rural small-scale peasant economy, we should vigorously develop cooperative financial institutions and appropriately develop commercial finance.

The connotation and Development basis of New Rural Cooperative Finance

The so-called "new" rural cooperative financial organization is different from the traditional cooperative finance, which is actually the re-proposal and sublimation of the characteristics of cooperative finance. Members are the "masters" of cooperative finance, that is, cooperative members have the dual attributes of customers and owners; credit cooperatives implement the system of "one person, one vote" instead of voting according to equity; part of the profits of cooperatives are used for public accumulation (generally not distributed), the rest are distributed according to shares and services, while the shareholding system can only be distributed according to shares. As a cooperative financial system arrangement, the new rural cooperative finance is faced with the lack of rural financial function and the credit characteristics of acquaintance society.

The credit characteristics of rural areas in China are mainly represented by the social credit of acquaintances, that is, the credit linked by interpersonal relations, which belongs to soft information from the perspective of information. Commercial financial institutions often take a fancy to the borrower's collateral, credit status and other dominant factors, which leads to the commercial finance can not effectively serve the rural economy. Cooperative finance is inherent in the institutional arrangement of rural economy, while the social credit and reputation mechanism of rural acquaintances provide informal institutional conditions for the development of cooperative finance. Cooperative finance can achieve sound development by reducing financing transaction costs through the relationship of consanguinity, geography and industry.

The development of cooperative finance is based on industrial management. At present, a large number of farmers' professional cooperatives have emerged in our country, and professional cooperatives need unified purchase and marketing. in the process of unified purchase and marketing, credit and credit often appear, giving birth to commercial credit, which has the possibility of deriving into financial credit. If cooperative finance can be inherent in cooperative economy, then it can better realize the symbiosis of rural finance and rural economy, for example, cooperative finance comes out of the cocoon from professional cooperatives and supply and marketing cooperatives.

The characteristics of private financing are suitable for cooperative finance. The first is light assets, often without thinking about collateral. The second is light data, which often does not provide structured data in accordance with the requirements of formal financial methods. We believe that there is actually a "central database" of private financing, which is the judgment formed by the acquaintance society over the years. The last is information symmetry, the whole process of capital operation is collective behavior, there is no information asymmetry. And how can cooperative finance replace private financing? Because the interest rate of cooperative finance is lower than that of private financing, it embodies the spirit of mutual assistance.

Six modes of New Rural Cooperative Finance

By combing the successful experience of international cooperative finance, we find that the reason for its success lies in adhering to the spirit of mutual assistance and voluntary, mainly serving the members. At the same time, in order to achieve the sustainable development of cooperative finance, it is necessary to commercialize and introduce external supervision.

In terms of capital sources, the commitment system can be used; in terms of capital returns, stock returns and trading volume returns each account for a certain percentage, reflecting the spirit of mutual assistance and cooperation; in terms of financial supervision, we need the supervision of the banks they cooperate with and the supervision of the local financial bureau, but we should pay attention to the regulatory boundaries of different regulatory bodies.

We believe that there are six models of new rural cooperative finance: cooperative finance + farmers' professional cooperative model; cooperative finance + commercial finance model, which makes cooperative finance have a sustainable source of funds; cooperative finance + Internet agribusiness platform. This will further reduce the transaction costs of cooperative finance and expand its boundaries. Mobile operator initiation model, through mobile phone address book and phone calls, text message records, mobile operators actually grasp the core interpersonal network of users, can supervise individuals, and then have a certain ability to supervise cooperative finance itself; Agricultural Bank of China and postal savings launch model, make use of their capital and network advantages; temple initiation mode, temples have a certain fund mobilization ability and risk management ability.