The Third Plenary Session of the Seventeenth Central Committee of the Communist Party of China proposed to "guide more credit funds and social funds to invest in rural areas". At the same time, it also deployed work to support the economic and social development of Tibetan areas in Qinghai and other provinces, and rural credit cooperatives ushered in the best development opportunity. However, due to the heavy historical burden, discriminatory policy constraints and other factors, Qinghai Rural Credit Cooperatives can not go into battle lightly, and feel deeply powerless in responding to the national policy and giving play to the role of supporting agriculture. -The burden of rural credit cooperatives has been heavy for a long time. According to Wang Yanling, chairman of Qinghai Rural Credit Cooperatives, due to policy, historical and operational factors, Qinghai Rural Credit Cooperatives have produced a large number of non-performing assets and losses, which have a long history. Wang Yanling said that the rural credit cooperatives were managed by the Agricultural Bank of China, the People's Bank of China and the Banking Regulatory Bureau for a period of time. Due to the lack of continuity in management, it is inevitable that some mess will occur. At the end of 1996, in the early stage of decoupling between rural credit cooperatives and agricultural bank of China, agricultural bank passed on some non-performing assets to rural credit cooperatives in various ways, and the creditor's rights were complex and difficult to resolve. Around 1999, according to the approval of the People's Bank of China, urban credit cooperatives in Haixi Prefecture of Qinghai Province, Datong County of Xining City and five counties in Haidong District (except Xunhua County) were all merged into local rural credit cooperatives, and at the same time, a large number of non-performing assets were merged, and most of them were loans for small and medium-sized enterprises that were shut down and turned bankrupt, resulting in a large amount of financial losses. In 21, the People's Bank of China changed eight urban credit cooperatives in Golmud to rural credit cooperatives, and withdrew from the market in 25 due to a run, which also brought a lot of burden. A large number of non-performing loans were generated when supporting funds for local government projects. For example, the information of Ping 'an County Rural Credit Cooperatives shows that in 22, the Ping 'an county government implemented the project of "Breeding in the West and Educating in the East" and the vegetable basket project, and the credit cooperatives issued loans of 1 million yuan to Shagou Village in Shagou Township and Xinzhuanger Village in Gucheng Township in Ping 'an County. Because the government's commitment was not in place, the project failed after the completion of the sheepfold, and the existing loan of 9 million yuan and interest could not be recovered. Wang Yanling said that the rural credit cooperatives in many developed provinces have developed rapidly because of the strong support of local governments, and they can even compete with the four major state-owned banks for market share. However, the rural credit cooperatives in Qinghai Province, located in poor western provinces, have received very limited financial support, which makes them difficult to operate and unable to expand in the face of the current huge market demand. Although from 25 to the end of October 28, the rural credit cooperatives in Qinghai Province developed well, with total assets increasing from 5.2 billion yuan to 14.7 billion yuan, deposit balance from 2.5 billion yuan to 7.7 billion yuan, and loan balance from 2.9 billion yuan to 7.6 billion yuan, making profits for three consecutive years, with accumulated operating profit of 24 million yuan. Digested by its own profits, the provision of rural credit cooperatives increased from less than 1 million yuan to 35 million yuan, digested losses of 117 million yuan and wrote off bad debts of 25 million yuan. However, due to the heavy historical burden, it is difficult to resolve. Rural credit cooperatives in Qinghai Province still have losses of more than 7 million yuan over the years, with non-performing loans of 1.3 billion yuan, accounting for 16.7%. The provision ratio of most credit cooperatives is still below 5%, and the non-performing non-credit assets are 3-5 million yuan, accounting for only 6% in the provincial market. Meng Jian, chairman of Ping 'an Rural Credit Cooperative, said helplessly, "We need several generations of efforts to digest the historical burden." The indigestible non-performing loans and historical losses have led to great operational risks in Qinghai Rural Credit Cooperatives, and their risk compensation ability is obviously insufficient. In addition, rural credit cooperatives can only digest the historical burden with profits, which also directly affects the next step of capital increase and share expansion and shareholding system reform. -unclear understanding of national policies is the main reason for the current difficulties in the operation of Qinghai rural credit cooperatives. In 25, the People's Bank of China implemented a bill discount policy for rural credit cooperatives nationwide to help rural credit cooperatives resolve their historical burdens. Based on the amount of non-performing loans and insolvency in 22, 5% of the bills were replaced by the People's Bank of China. Anning, director of the Banking Regulatory Bureau of Qinghai Province, said that the data of the reform base period at the end of 22 were seriously distorted because the rural credit cooperatives of counties (cities) in Qinghai adopted illegal methods such as concealing non-performing loans, making false profits and making real losses, making less provision and increasing deposit shares, and only got about 213 million central bank bills discount quota, which was the least in the country, far below the real level. The most provinces have access to tens of billions of dollars. Wang Yanling said that at least 8 million yuan was underreported that year. Missing the current round of policies of the People's Bank of China directly leads to a large number of historical burdens of rural credit cooperatives in the past ten years, which has become the main reason for the current difficulties in the operation of Qinghai rural credit cooperatives. He analyzed the reasons why the data in 22 were wrong, mainly because the rural credit cooperatives were not sure about the central policy, and they were afraid of affecting the assessment performance, and adopted ways such as underreporting and concealing as much as possible; On the other hand, because the rural credit cooperatives were managed by the Agricultural Bank of China, the People's Bank of China and the Banking Regulatory Bureau respectively for a period of time, the personnel were complicated, the overall quality was not high, there were many loopholes in management and the system was not perfect, so the reported data was untrue. Meng Jian, chairman of Ping 'an Rural Credit Cooperatives, said that in 22, the real non-performing loans of Ping 'an Rural Credit Cooperatives were about 27 million yuan, accounting for about 36.2%, but only 19 million yuan was reported at that time, accounting for 24.1%. On the one hand, underreporting caused the discount amount of bills to be reduced by about 4.5 million yuan; On the other hand, certain conditions must be met for bill payment, such as capital adequacy ratio reaching 4% and non-performing loans decreasing by 5% compared with 22. However, due to the untrue data in 22, the actual non-performing loan ratio is much higher than the reported level of 24.1%, so it is very difficult to realize payment by reducing the proportion of non-performing loans from 36.2% to 12%. Nowadays, Ping 'an County Rural Credit Cooperatives have fallen into an infinite loop that there is no bill discount, the index is difficult to reduce, and the index is difficult to reduce, so it is impossible to pay the bill. At present, the redemption rate of Qinghai Rural Credit Cooperatives is only 47.28%, and there are still many credit cooperatives that can't realize redemption like Ping 'an Rural Credit Cooperatives. -Discriminatory policies restrict the self-development of rural credit cooperatives in Qinghai Province. In 24, the General Office of the State Council's Opinions on Further Deepening the Reform of Rural Credit Cooperatives (Guo Ban Fa [24] No.66) clearly stipulated that "relevant departments and local governments in the State Council should create a good environment for the business development of rural credit cooperatives, cancel unreasonable restrictive policies and regulations, expand the sources of funds for rural credit cooperatives and improve the level of services for supporting agriculture." Since the pilot reform was officially launched, some discriminatory policies and regulations have been abolished in various localities and departments, with the aim of creating a better external environment for rural credit cooperatives, supporting rural credit cooperatives to solve their burdens as soon as possible and accelerate their development. However, there are still many discriminatory policies in many industries and departments. For example, housing provident fund, budget funds, project funds, social security funds and other funds are not allowed to open accounts in credit cooperatives, and financial services such as treasury bonds and fund sales cannot be carried out. While social security has entered the countryside in an all-round way, rural credit cooperatives have restrictions on pension and medical insurance services, which have restricted the development of rural credit cooperatives. Meng Jian said that now the state encourages residents to obtain property income, but rural credit cooperatives can't carry out wealth management business. When the stock market was booming last year, rural credit cooperatives had a large number of deposits lost and transferred them to the four major state-owned banks to buy funds. This year, although the stock market was sluggish, those lost deposits did not return. These discriminatory policies have led to the emergence of blood-drawing financial markets in many areas of Qinghai. Most of the deposits went to the four major state-owned banks and postal savings for overall use, but they were rarely put into the local area. The rural credit cooperatives can't get enough sources of deposits, and they can't give full play to their role in supporting agriculture. The outflow of funds is extremely unfavorable to the relatively backward areas that need capital development. Meng Jian introduced that taking Haidong area of Qinghai Province as an example, from January to September this year, all financial institutions increased their deposits by 1.6 billion and loans by 4 million, while rural credit cooperatives only increased their deposits by 12 million and loans by 26 million, accounting for 65% of the total loans. At present, Ping 'an Rural Credit Cooperatives mainly rely on 17 million people's bank to refinance loans, which undoubtedly increases the cost of capital and affects the benefits. In addition, the market access conditions for further deepening the reform of rural credit cooperatives are too high for these backward provinces in Qinghai. In the reform of property rights system, the market access conditions of banking supervision departments are across the country, without taking into account the actual work of credit cooperatives in Qinghai Tibetan areas. According to the new requirements and regulations in the Measures for the Implementation of Administrative Licensing Matters of Rural Small and Medium-sized Financial Institutions of China Banking Regulatory Commission (Order No.3 of the Chairman in 28), Qinghai Rural Credit Cooperatives are faced with three thresholds: too high registered capital requirements, too high control ratio of non-performing loans, and too high proportion of investment shares, which restricts the further development and establishment of rural cooperative banks in counties and cities with good development at present. -Qinghai rural credit cooperatives urgently need to increase support. Economy determines finance, and the economic development of Qinghai Province objectively restricts the rapid development of credit cooperatives. The underdeveloped and unbalanced regional economy has caused the underdeveloped and unbalanced reform and development of rural credit cooperatives in Qinghai. Due to the harsh natural conditions, weak regional economic foundation and other factors, compared with other financial institutions in the province, Qinghai rural credit cooperatives have a slow development speed, a small scale of operation and insufficient overall development capacity. In this case, it is almost impossible to truly realize "losing the burden and traveling lightly" only by relying on the self-ability of rural credit cooperatives. It also needs the support and help of governments at all levels and relevant departments, increasing support for rural credit cooperatives, implementing preferential policies, and creating a better external environment for rural credit cooperatives. First, it is suggested that on the basis of full investigation, the non-performing assets and losses of rural credit cooperatives in Qinghai Province should be paid in full or in part. In particular, at the end of 22, special policy support was given to 8 million non-performing loans related to agriculture that were not truly and objectively reflected. Second, since Qinghai is the largest Tibetan area except Tibet, it is suggested to give special support to Tibetan areas in Qinghai, such as providing long-term or interest-free loans to support agriculture. Thirdly, in view of the current situation of social and economic development in Qinghai, the reform of credit cooperatives in Qinghai Province, especially in Tibetan areas, is guided by classified supervision. When establishing rural cooperative banks and rural commercial institutions, give full consideration to the actual work of rural credit cooperatives in Qinghai Province and give special support. Fourth, explore the establishment of risk compensation mechanism for rural loans. The agriculture and animal husbandry industry in Qinghai is a weak industry with great risks, and the rural credit cooperatives, whose responsibility is to support agriculture, countryside and farmers, are even more vulnerable groups in the financial system. Due to the lack of policy and commercial risk compensation channels, all the risks arising therefrom are borne by the rural credit cooperatives. Fifth, it is suggested that the state should appropriately compensate the losses caused by credit cooperatives' undertaking the task of supporting agriculture by policy. Rural credit cooperatives, as the main force serving farmers, undertake the task of supporting agriculture by policy to a great extent. The characteristics of policy-based credit support for agriculture are high risk and low income, which determines that the possibility of losses is greatly increased, so it is necessary to compensate the losses caused by it appropriately. -Qinghai rural credit cooperatives still need to practice their internal strength. Accelerating development and optimizing increment are the fundamental ways to solve historical burdens and other difficulties. To truly realize the development of Qinghai rural credit cooperatives, they still need to practice their internal strength. First of all, unswervingly deepen reform, and only by constantly innovating the system can we achieve sustainable development. In the next step, Qinghai Rural Credit Cooperatives should gradually set up higher-level unified corporate associations or rural cooperative banks and rural commercial banks on the basis of the existing unified corporate associations with counties and cities as units, and finally transform the whole province into joint-stock banks. Secondly, the customers faced by rural credit cooperatives have the characteristics of vulnerable groups, and their financial needs are characterized by dispersion, small scale, asymmetric information and insufficient mortgage. It is difficult to control the market risk of agricultural production and the moral hazard of farmers. Therefore, we should vigorously promote the construction of "credit users", "credit villages" and "credit townships (towns)" which are being actively carried out in some areas of Qinghai, and establish a rural credit system from the aspects of improving the rural credit education system, credit information collection system, credit evaluation system, credit incentive and restraint mechanism and credit guarantee system. Rural supporting guarantee institutions can be established through local governments or rural professional cooperatives, and a guarantee mechanism for agricultural loans can be established to spread business risks; At the same time, dig deep into all kinds of "credit * * * loan models", establish a credit * * * entity with "benefit * * * and risk * * *", and establish an effective joint guarantee mechanism and risk dispersion mechanism for its members to obtain credit support. Thirdly, standardization construction is an important guarantee for the scientific development of rural credit cooperatives, which requires the establishment and implementation of various business and management processes to turn rural credit cooperatives into process banks; Actively introduce the comprehensive risk management concept of modern banks, establish a comprehensive risk management system, and change passive risk prevention into active risk management. Risk management is not only an organizational responsibility, but also a corporate culture and daily behavior. Fourth, strengthen communication with government departments, grasp policy orientation, assist the government in project risk analysis and control, and do not blindly match funds for government projects. Some government projects have great impetus at the beginning, but the follow-up service is not in place at the later stage. Farmers have nowhere to solve the problems encountered in production, which affects the realization of benefits. Farmers blame the government and have a certain impact on the timely repayment of credit funds of rural credit cooperatives. Fifth, optimize the allocation of staff to meet the post quality requirements of process management; Build a highland of talents and solve the problem of lack of professionals and excellent managers; Implement post responsibilities and rights, so as to clarify the method of linking risk management responsibilities with performance; Strict process supervision and effective rewards and punishments; Establish a personnel withdrawal mechanism, fully implement the competitive appointment system, and improve the overall quality of the team.