Joint Cooperative of the Rural Credit Cooperatives Based on Transitional Institutional Arrangement

摘要

This paper used property rights theory to study the existing management system of rural credit cooperatives (RCC). In realty, the provincial joint cooperative of the rural credit cooperative (PJCRCC) formed the inversion phenomenon in the ownership rights and control rights. So provincial government should integrate RCCs in county areas to construct a county-level cooperative as a legal person (CC), and CCs in provincial areas invested jointly share to establish a new PJCRCC, then it perfected its corporative governance structure, ultimately the new PJCRCC became a local financial institution with independence. Therefore, the old PJRCC is a transitional institutional arrangement.