A summary of the difficulties in collecting non-performing loans by rural credit cooperatives

With the development of social economy, it is imperative for rural credit cooperatives to collect past non-performing loans. However, in this process There will definitely be many obstacles. In order to ensure the smooth progress of collection, based on the current situation of my country's legal system construction, a brief summary of the difficulties in collecting non-performing loans by rural credit cards was made to clarify the ideas.

1. Collection of difficulties

Large total amount, small single amount, large number of households, and wide distribution are several major characteristics of farmers’ non-performing loans. However, the rural economy is backward and the urban economy is With the development of the country, farmers' dependence on land has been greatly reduced. The number of migrant workers and businessmen has increased year by year. Many farmers have moved their families and their whereabouts are unknown.

Rural credit cooperatives have few staff, tight time, and heavy workload. Many credit unions are located in remote mountainous and hilly areas with backward transportation, small deposit and loan scales, low efficiency, few staff, and backward equipment. Coupled with poor communication and lack of information, the collection of non-performing loans of small farmers is heavy and difficult, making the collection work very difficult.

2. Difficulty in disposing of mortgage assets

Loan credit unions use capital to offset loans through agreements or people's rulings. After obtaining mortgage assets at a high price, it is not only difficult to realize them, but also costly, especially If the mortgage asset is real estate, the realization cost is higher. The loan credit union handles the mortgage real estate by itself, saving appraisal fees and auction fees. Although appraisal fees and auction fees can be reduced, transaction taxes cannot be avoided and transaction taxes need to be paid twice.

The first time is from the debtor to the loan credit union, and the second time is from the loan credit union to the buyer.

3. It is difficult to collect loans legally

When lenders take various measures and still cannot recover the principal and interest of non-performing loans, they have no choice but to take the last resort: according to the law. Due to insufficient social integrity and a poor law enforcement environment, loan collection according to law is characterized by high costs, low efficiency, difficulty in enforcement and difficulty in providing evidence.

1) High cost: From the collection to the execution of the loan according to the law, you need to pay litigation fees, preservation fees, execution fees, appraisal fees, auction fees, etc.

2) Low efficiency: According to the provisions of the Civil Procedure Law, from the filing of a lawsuit to the application for enforcement, the collection of loans in accordance with the law must go through procedures such as case filing, service, exchange of evidence, court hearing, judgment, appeal, and application for enforcement. , as little as half a year, as much as two or three years, and even worse, nowhere in sight.

3) Difficulty in execution: After the loan collection in accordance with the law enters the execution process, on the one hand, the debtor does everything possible to transfer assets and evade debt; on the other hand, it tries to open up the execution joints and mobilize various relationships to put pressure on the execution personnel.

4) Difficulty in providing evidence: On the one hand, the debtor transfers and conceals assets and refuses to perform even though he has the ability to do so; on the other hand, the loan credit union cannot collect and provide evidence regarding the debtor’s property clues, and the people cannot enforce it.

4. Debtors use various tricks to transfer assets

After obtaining loans through various means, some debtors try their best to transfer assets and avoid debts.

Debtors generally transfer property and evade debts in the following ways:

1) Transfer company assets to affiliated companies and individual shareholders through unfair transactions and false transactions, causing the company’s operations to suffer Difficulties, insolvency, and the ultimate goal of escaping debt through bankruptcy or bankruptcy;

2) By selling off property at a low price and transferring assets to other units and individuals in collusion with the debtor;

p>

3) Failure to claim rights in a timely manner for a large number of maturing claims resulted in the debtor’s maturing claims exceeding the statute of limitations;

4) The debtor bribed and colluded with the staff of the lending credit union, both internally and externally.

Credit cooperatives deal with non-performing loans in several categories: on- and off-balance sheet

On- and off-balance sheet. Currently, the non-performing loans existing in rural credit cooperatives are divided into two categories: on-balance sheet and off-balance sheet. The off-balance sheet part is further divided into three categories: bad debt write-off, central bank bill replacement, and government replacement. Rural credit cooperatives (hereinafter referred to as rural credit cooperatives, rural credit cooperatives) refer to rural cooperative financial institutions established with the approval of the People's Bank of China, composed of members holding shares, practicing democratic management, and mainly providing financial services to members.

What is the total amount of non-performing loans of rural credit cooperatives nationwide in 2022?

The write-off amount of bank non-performing loans in the first half of 2022 hit a record high: reaching 477.7 billion yuan! - Zhihu

On July 22, 1,055.1 billion yuan, 1,218 billion yuan, and 1,029.9 billion yuan were written off. The amount of written-off loans for the fourth consecutive year has been more than 1 trillion yuan.

About rural credit cooperatives’ non-performing loans and rural areas This concludes the introduction to the credit union’s non-performing loan repayment details. Have you found the information you need?