Rural mutual fund cooperatives are mutual fund organizations initiated, owned and managed by farmers engaged in similar or related production. In order to obtain convenient financing services or economic benefits, it is established in accordance with the principles of capital participation, democratic management and mutual assistance and mutual benefit. Carry out lending business within the scope of members. Mainly composed of farmers' shares, all of which are one person, one vote; The cooperative establishes a board of directors and a board of supervisors, all of which are elected from the members; Convene regular members' meetings to study and decide on major issues of cooperatives.

I. Institutional advantages

Rural mutual funds cooperative is a new banking financial institution born in rural economy and based on the principle of real cooperation. They are born with institutional advantages, which is consistent with the positioning of rural mutual funds cooperatives to provide small loans to farmers. The systems suitable for positioning include loan system, loan system, organizational structure system and risk control system.

Two. Geographical, consanguineous and kinship advantages

Rural mutual funds cooperatives have geographical advantages, consanguineous advantages and consanguineous advantages. Members know the roots and the information is very symmetrical. In addition, due to the system design of the credit union itself, members do not need to sign a contract to borrow money from their credit unions, and they do not need to distinguish whether the farmers' loans are used for production needs or life needs. Mutual funds can meet the small and frequent credit needs of farmers in time.

Three. Information superiority

Rural mutual funds cooperatives can be used as carriers for commercial banks and rural credit cooperatives to provide small loans to farmers. Rural mutual funds cooperatives were born in the rural economy and deeply rooted in the countryside, so they have information advantages that commercial banks and rural credit cooperatives do not have. Rural credit cooperatives can provide loans to farmers through secured mutual funds cooperatives. This has two advantages: first, farmers with good reputation can get more loans; Second, mutual funds cooperatives can borrow money from credit cooperatives as a guarantee to provide loans to more farmers or increase the loan amount of farmers.

Four. competitive edge

Rural mutual funds cooperatives are conducive to curbing the massive outflow of rural funds and forming a competitive relationship with credit cooperatives. According to estimates by Ma Cheng and Yang Xiaoyu, the rural capital outflow reached 6 trillion yuan in 2005. And rural construction of new countryside needs a lot of money. Farmers can deposit their surplus and temporarily unused funds in rural mutual funds cooperatives in the form of shares, instead of commercial banks, credit cooperatives and postal savings, so that a large amount of funds can stay in the countryside. Competition between a large number of rural credit cooperatives can promote credit cooperatives to improve service quality, provide more financial products suitable for farmers and better meet farmers' financial needs.

Verb (abbreviation of verb) is compared with other institutions

First of all, compared with banking financial institutions, rural mutual funds cooperatives have the following advantages: First, they serve a wide range of people. From the perspective of clients, the clients of banking financial institutions are mainly rural small and medium-sized enterprises, leading enterprises in agricultural industrialization, rural public infrastructure construction and individual production and business households with large demand for funds in rural areas. Second, compared with rural credit cooperatives, "rural mutual funds cooperatives" are real farmers' own rural cooperative financial organizations based on the principle of cooperative system. Thirdly, compared with the rural foundation which used to focus on informal finance, it has the characteristics of legal person qualification and legal operation. In the past, rural foundations absorbed deposits and loans from the society, but without the approval of the CBRC, they formed an extracorporeal circulation of funds. In addition, the management system is imperfect and the quality of managers is low, which is easy to cause financial shocks and instability.