MarketledReformsofChina39sRuralCreditCooperativesAProposal.docVIP

Market-led Reforms of China’s Rural Credit Cooperatives: A Proposal Minquan Liu, Zhong Xu, Jiantuo Yu, Shengwu Zhou, Yingtao Zhao Abstract: China’s rural credit cooperatives (RCCs) have undergone several major rounds of reform since the mid-1990s. However, these reforms overemphasized issues such as RCC ownership and internal governance structure while neglecting the importance of market discipline, competition and ease of entry and exit. Therefore, such reforms had difficulties in achieving their expected goals. Based on an analysis of current geographical restrictions in place on the