If a rural credit cooperative goes bankrupt, the state will provide compensation.

According to China's "Rural Credit Cooperative Law", if a rural credit cooperative does go bankrupt, the state will compensate the rural credit cooperative to a certain extent within the scope of the law.

The scope and method of compensation may vary depending on specific circumstances and legal provisions.

The Chinese government implements a deposit insurance system to ensure that each depositor's deposits are protected within a certain range.

When a rural credit cooperative goes bankrupt, the deposit insurance agency will repay deposits that meet the regulations to ensure the interests of depositors.

When a rural credit cooperative fails, the government may take measures to help deal with the bankruptcy problem, such as organizing financial institutions to take over part of the business to ensure that the financial needs of rural community residents are met.

Institutional characteristics 1. It is a cooperative financial organization jointly formed by farmers and other individuals in rural areas to raise funds and with mutual assistance as its main purpose. Its business operations are managed and operated by members designated by members on the basis of democratic elections and are responsible to the members.

Its highest authority is the Members' Congress, and the executive body responsible for the management of specific affairs and business operations is the Board of Directors.

2. The main source of funds is the share capital paid by cooperative members, the retained provident fund and the deposits absorbed; loans are mainly used to meet the financial needs of its members.

At first, it mainly issued short-term production and living loans and consumer loans. Later, with the development of the economy, the lending channels were gradually expanded, and they were no different from commercial bank loans.

3. Since the business objects are cooperative members, the business procedures are simple and flexible.

The main tasks of rural credit cooperatives are: in accordance with the provisions of national laws and financial policies, organize and regulate rural funds, support agricultural production and comprehensive rural development, support various forms of cooperative economy and member family economy, and limit and combat usury.