Читать книгу Rural Finance in Poverty-Stricken Areas in the People's Republic of China - Xuechun Zhang - Страница 45

The advantages of local rural financial institutions lie in their access to local information, which can reduce monitoring costs and information asymmetry. However, under the current system, RCC management assumes little responsibility for RCC performance. In the absence of significant changes in the ownership arrangements and governance structures of rural financial institutions, the reforms remain under the control of an RCC management that benefits from the current system. With weak governance, risk control can only be strengthened by administrative measures—that is, by concentrating decisionmaking power. At the ABC, this is done by depriving lower-level branches of decisionmaking power over loans; RCCs concentrate decision-making power regarding lending and treasury functions in the rural credit cooperative unions. Nevertheless, concentrated decision-making power can hardly solve the problem of asymmetric information or encourage a timely response to changes in demand.