I. Introduction:

Rural credit cooperatives are rural cooperative financial institutions approved by the People's Bank of China, which are composed of members' shares, implement democratic management, and mainly provide financial services for members.

Two. Features:

1, farmers and other individuals in rural areas jointly form cooperative financial organizations whose main purpose is mutual assistance. Its business operation is managed and operated by the personnel designated by the members on the basis of democratic election and is responsible to the members. Its highest authority is the member congress, and the executive body responsible for managing specific affairs and business operations is the Council.

2. The main sources of funds are shares paid by cooperative members, retained provident fund and 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 broadened the channels of borrowing, and now it is no different from commercial bank loans.

3. Because the business object is a cooperative member, the business process is 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 member family economy, and limit and crack down on usury according to the provisions of national laws and financial policies.

Three. Problems faced:

1. Financial risks are increasing day by day, and there is no way to contain them quickly.

2. Unclear property rights and unsatisfactory system are the important reasons why it is difficult to fundamentally improve the operating conditions of credit cooperatives.

3. In order to meet the basic financial services of rural residents, credit cooperatives have been unable to support themselves.