Rural commercial banks are joint-stock local financial institutions composed of farmers, rural industrial and commercial households, enterprise legal persons and other economic organizations.
China Rural Credit Cooperatives (hereinafter referred to as Rural Credit Cooperatives) is a rural cooperative financial institution established with the approval of the People's Bank of China. It consists of members' shares, implements democratic management, and mainly provides financial services for members.
China Rural Credit Cooperative is an independent enterprise legal person and is responsible for its debts with all its assets. Its main task is to raise idle funds in rural areas and provide financial services for agriculture, farmers and rural economic development. In accordance with national laws and financial policies, organize and standardize rural funds, support agricultural production and comprehensive rural development, support various forms of cooperative economy and family economy, and limit and crack down on usury.
As early as 1950s, the outlets of China People's Bank in rural areas were changed to rural credit cooperatives. The purpose of rural credit cooperatives is "mutual assistance of farmers' funds", that is, farmers form credit cooperatives, and members contribute capital to form loans.
The relationship between county associations and individual credit cooperatives is equivalent to that between head offices and sub-branches. There is a county association in a county. At first, the county association was managed by the Agricultural Bank. 1996 and returned to the people's bank; After 1999, the People's Bank of China gradually established prefecture (city) associations and county associations returned to prefecture (city) associations. After 2003, the People's Bank of China revoked the local (city) association and handed over the management right of rural credit cooperatives to the provincial government, which established the provincial association, which was in charge of the county association.
So far, from the economic and legal point of view, each county association is equivalent to an independent bank (enterprise), the actual owner is the provincial government, and the county associations in the province jointly invested to form the provincial association, so the provincial association is actually the "son" of the county association; Administratively, each county association is the administrative department in charge of credit cooperatives, and the provincial association is the highest administrative department, so the provincial association is the "Lao Zi" of the county association. Because of its high administrative status, the provincial association has become the actual manager of the county association economically.