Governance Structure - The differences in governance models during the reform of rural credit cooperatives stem from varying understandings of the governance structure within the rural credit system, which includes all county-level legal entities within a province [1] - The effectiveness of the "small legal person big platform" governance model varies significantly across provinces, raising questions about whether these differences are due to the governance system or human factors [1] Historical Context and Regulatory Framework - The 2003 pilot reform plan for rural credit cooperatives emphasized the need for a robust constraint mechanism, adhering to the "four self" principles: self-operation, self-restraint, self-development, and self-risk-bearing [4] - From 2003 to 2019, the overall development of the rural credit system was stable and positive, indicating that the development model of rural small banks is viable [4] Recent Policy Directions - The central government's documents from 2020 and 2021 reaffirmed the importance of maintaining the county-level legal status of rural credit cooperatives, emphasizing the need for supervision, risk resolution, and reform [4] - The Zhejiang Provincial Economic Committee highlighted the need for a "big platform" to support small legal entities in the face of risks, suggesting that the role of provincial associations is crucial [4] Operational Practices - Healthy provinces within the rural credit system have adhered to the "four self" principles, granting legal entities sufficient operational autonomy without intervening in specific business activities [7] - The Zhejiang Provincial Association has focused on three main responsibilities: guiding direction, managing personnel, and risk management, while enhancing service capabilities [7] Shareholding and Governance Challenges - The dispersed shareholding structure of rural credit cooperatives makes them susceptible to control by major shareholders, necessitating special governance arrangements to ensure adherence to the core mission of serving agriculture [10] - Provincial associations are tasked with strengthening management for underperforming entities while allowing well-performing entities to operate autonomously [10] Reform Trends - Recent reforms have seen the emergence of an "upward reference" model, with some provinces moving towards a unified legal entity structure, which is still under evaluation for its effectiveness [11] - Maintaining the "downward reference" model is essential for granting operational autonomy to rural credit cooperatives, enabling them to effectively contribute to local economic development and rural revitalization [11]