In the embryonic stage (1984 to 1986), as early as the second half of 1983, some villages in Heilongjiang, Liaoning, Jiangsu and other places, in order to effectively manage and use the living collective accumulated funds, through cleaning up and rectifying the collective property, tried out the collective funds "team has village management" or "team has township management".
In the experimental stage of reform (1986 to 199 1 year), the central government pointed out that this internal mutual financing method was allowed to be tried out without handling deposit and loan business. Later, it was pointed out that the Agricultural Bank of China provided guidance in credit business. The central government's encouragement, support, experiment and popularization of rural cooperative foundations have enabled the national rural cooperative foundations to flourish. From the end of 1986 to the end of 1988, the total amount of internal financing in rural areas grew the fastest, increasing by about 4 billion yuan in two years. By 1992, rural cooperative financial organizations with rural cooperative foundation as the main form have been established in China, with township level 17400 and village level 1 12500, accounting for 36.7% of the total number of townships and 15.4 of the total number of villages respectively. Among them, Sichuan and Jiangsu provinces have exceeded 2 billion yuan, and Hebei and Shandong provinces are also close to 2 billion yuan.