Abstract: At present rural cooperative banks are troubled by mingled property and ownership absence, which are expected, by the central government, to be solved through reform in rural commercial banks. The paper based on both financial demand of the farmers households and local economic development sets up dynamic game model with complete information and shows that since local official's performance is linked to GDP the results in games between central government and local government decide the latter’s option of property regime. That’s to say the central government wishes the local government to clearly establish property regime in RCC, whereas the local government will choose regime of rural commercial banks according to GDP maximization which makes the reform deviate from intended target and result in many problems. Accordingly, the paper puts forward some relevant policy proposals.