Abstract:Based on the questionnaire and on- the- spot interview data from 13 rural credit cooperatives(RCC) and local China Banking Regulatory Bureau in Yan'an in 2010, this paper uses factor analysis and cluster analysis to make a lateral comparison of operational efficiency among the above 13 RCC. The result shows that operational efficiency differences are mainly from risk resistance capacity, profitability and agrosupport capacity. This paper divides RCC into three levels in accordance with their efficiency scores and economic development. Therefore, this paper proposes several policy suggestions on how to improve the operational efficiency of RCC which includes perfecting risk controlling mechanism, innovating business and strengthening support from governments.