By Zhang Chenghui and Zheng Xingchen, European agricultural bank research group, Research Institute of Finance, the DRC

Research Report No 228, 2013

Abstract

In accordance with deepening reform of rural credit cooperatives, the Research Institute of Finance of the DRC has organized a field trip to Europe to study its management system and trends in rural cooperative finance. Based on the field trip, the three major rural cooperative banks will actively seek innovation in integration, systematic supervision and services related to agriculture. The banks will also improve market competitiveness by developing scale, information and services to meet the demands of the local economy. The banks serve as an important reference for deepening China's provincial rural credit reform.

The group came up with many lessons: it shall push forward regulated integration of grass-roots rural credit service; it shall set up a strict and effective monitoring mechanism for grass-roots rural credit cooperatives; it shall improve the functions of the rural credit cooperative; it shall improve the service and innovation capability of the rural credit cooperative’s system; and it shall accelerate the development of rural financial services through the market mechanism.