Rural Credit Cooperatives (rural credit cooperatives in English, rural credit cooperatives for short in Chinese) refer to rural cooperative financial institutions established with the approval of the People's Bank of China, which are composed of members' shares, implement democratic management and mainly provide financial services for members.
rural credit cooperatives are independent enterprise legal persons, which are responsible for the debts of rural credit cooperatives with all their assets and enjoy civil rights according to law. Its property, legitimate rights and interests and business activities carried out according to law are protected by state laws. 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 regulate rural funds, support agricultural production and comprehensive rural development, support various forms of cooperative economy and family economy of members, and limit and crack down on usury. As early as 195s, the outlets of China People's Bank in rural areas were changed to rural credit cooperatives. The purpose of rural credit cooperatives is "farmers help each other in funds", that is, farmers form credit cooperatives, and members contribute money to form capital, and members can borrow money.
rural credit cooperatives are divided into the following departments: rural credit cooperatives, international finance department of rural credit cooperatives, Zhengtong rural credit cooperative training school, credit department of rural credit cooperatives, etc., which are currently under the dual leadership of CBRC and the State Council.
As a banking financial institution, rural credit cooperatives have their own characteristics, which are mainly manifested in the following aspects:
(1) Farmers and other individuals in rural areas jointly form a cooperative financial organization with mutual assistance as its main purpose, and its business operation is managed and operated by personnel designated by members on the basis of democratic elections, and it is responsible to members. Its highest authority is the members' congress, and the executive body responsible for the management of specific affairs and business operation is the Council.
(2) The main sources of funds are the shares paid by cooperative members, the retained provident fund and the absorbed deposits; Loans are mainly used to solve the capital needs of its members. At first, it mainly issued short-term production and living loans and consumer loans. Later, with the economic development, it gradually widened the lending channels, which is no different from commercial bank loans.
(3) Because the business object is the cooperative members, the business procedures are simple and flexible. The main tasks of rural credit cooperatives are to organize and regulate rural funds, support agricultural production and comprehensive rural development, support various forms of cooperative economy and family economy of members, and limit and crack down on usury in accordance with the provisions of national laws and financial policies.