Diversification of Ownership in Rural Credit Cooperatives

Credit cooperatives have their own characteristics. There are three main misunderstandings in the practice of rural credit cooperatives in China: mixed with the collective economy; confuse credit intermediary with the general intermediary; the problem of bureaucracy in the process of reform. Therefore, to diversify the ownership is the key to the reform of rural credit cooperatives. According to the analysis of this article, the reform of Chinese rural credit cooperatives should stick to the following routes: First, transform most of rural credit cooperatives into commercial banks; Second, change some rural credit cooperatives into genuine credit cooperative in accordance with the principles of cooperative organizations.