Hello friends! The credit union is a favorite among friends in the township! Although it is not as high-end as a bank, my dear friends, through decades of ups and downs, deposits, financial management, loans to help farmers... can be said to be the financial steward of farmers, good calculation!
The credit union has a long history, and its full name should be XX Capital Credit Union! It was established by our farmer friend, you and his two "joint-up shares" with one yuan and two! Also serving friends in towns and villages! It’s regional finance! The reason why it is a credit union instead of a bank is because there are some differences from banks!
The first difference is that the shareholders are different! Most of the shareholders of credit unions are farmers, township governments or rural enterprises, etc. Most of the shareholders of banks are social legal persons, or directly the state!
The second difference is that the objects and regions served are different! For example, villages and towns are usually used as units to provide financial services to members, friends, or farmer friends! The bank's service area is relatively wide, such as a city, a province or the whole country!
Third, the state particularly supports the work of credit cooperatives, so some indicators and management of credit cooperatives are relatively loose, so that we can better serve our farmers and friends, and serve the economic construction of towns and villages...
Having said that, there are a lot of similarities! For example, everyone enjoys equal access to deposit insurance with a maximum protection and indemnity of RMB 500,000! You can deposit, finance, loan, etc.! Now credit unions are transforming into Golden Phoenix! I believe that soon more credit societies will be transformed into rural commercial banks to provide our friends with better, more complete and higher-quality services!
The relationship between inclusion and inclusion. Credit unions are a subcategory of banks.
Banks mainly include the central bank, policy banks, state-owned commercial banks, joint-stock commercial banks, city commercial banks, and credit cooperatives.
The central bank is the People's Bank of China, which is a department of the State Council. It is the regulatory agency of banks and the bank of banks, commonly known as the central bank. Responsible for the implementation of monetary policy and interest rate policy.
Policy banks such as the China Development Bank, the Export-Import Bank, and the Agricultural Development Bank of China are not for profit. They do not absorb public deposits and issue loans. Instead, they undertake policy financing activities for key national construction projects.
State-owned commercial banks such as Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank. These four are systemically important banks (G-SIBs). Their capital size crushes the foreign JPMorgan Chase Bank of America. Citigroup and HSBC are the big brothers in the world. There are also Bank of Communications and Postal Savings Bank. State-owned commercial banks are large commercial banks directly controlled by the state, with large customer base and giant market size.
Joint-stock commercial banks such as China Merchants Bank, Shanghai Pudong Development Bank, China CITIC Bank, Everbright Bank, Industrial Bank, Ping An Bank, etc. are the second echelon in the banking system after the Workers' and Peasants' China Diplomatic Bank.
City commercial banks are established under the leadership of municipal or provincial finance. Their market positioning is to serve the local economy and small and medium-sized enterprises. From the naming point of view, it is "city name + bank", such as Changshu Bank and Nanjing Bank. , Bank of Beijing, etc. City commercial banks are based on the local area and are an important supplement to the financial services of local enterprises.
Credit cooperatives are rural cooperative financial institutions approved by the central bank to provide financial services. They have very strong Chinese characteristics and have experienced many years of restructuring and reform. Initially, they were managed by people's communes and production brigades, and were later managed by the Agricultural Bank of China. After the 1990s, the State Council separated credit cooperatives from the Agricultural Bank of China and were managed by the People's Bank of China. Judging from the reform trend, some local credit cooperatives have been restructured into commercial banks and no longer have the attributes of rural cooperation.
From a business point of view, credit cooperatives serve rural areas and farmers, and are responsible for people’s livelihood tasks such as the settlement of social security pensions for the rural population and the settlement of relief funds for poor households. They also have a large number of agriculture-related loan businesses. They are friends of farmers and towns. The bank that businesses are most familiar with. From the perspective of layout, credit cooperatives are good at doing business that big banks don’t want to do or can’t reach. They focus on the rural market. It is difficult to see branches of ICBC, Bank of China, China Construction Bank or joint-stock big banks in remote towns. However, credit cooperatives have branches all over the towns. .
Nowadays, most credit unions have been transformed into joint-stock banks. There are almost no traditional credit unions. Banks and credit unions are allowed to go bankrupt, but banks and credit unions have deposit insurance. Generally, Within 500,000, the insurance company will pay compensation in case of bankruptcy.
Banks and credit communities are unique.
Banks are formal enterprises, including large state-owned banks and small local banks.
Credit cooperatives are the former rural credit cooperatives and urban credit cooperatives. They are small financial institutions in the region that are led by local governments and have government shares, companies, and individual residents.
Generally speaking, bank credit unions do not fail. But we don’t rule out bankruptcy under special circumstances. For example, isn’t this the case with Baoshang Bank?
If Baoshang Bank, which has hundreds of billions of deposits and nearly 10,000 employees, can fail, how can a credit union not go bankrupt?
In particular, various credit unions have common problems such as heavy historical burdens, aging personnel, complex shares, many local influences, and difficulty in operating independently.
There are thousands of banks across the country, and a deposit of less than 500,000 yuan can ensure that the deposit will not be lost.
There is essentially no difference. Like banks, the main user groups they target are different. Credit unions mainly target rural people, while commercial banks target non-agricultural users, mostly individuals and enterprises.
In case of bankruptcy, it is the same as a bank, with a maximum compensation of 500,000. The excess will not be compensated, and the loss will have to be endured.
Rural Credit Cooperatives were established by the People's Bank of China in 1953. Throughout the 1950s, at the grassroots level below the district level in China, the only two entities operating currency were the People's Bank of China and Rural Credit Cooperatives. Today's commercial banks and rural credit cooperatives have many similarities and differences. The People's Bank of China is a national policy bank under the leadership of the State Council. In addition to issuing currency, the deposit and loan interest rates of commercial banks and rural credit cooperatives must also be adjusted in each period according to the development speed of the national economy. The central bank also undertakes part of the deposit and loan business, but it is aimed at the deposits and loans of various commercial banks. Commercial banks must truthfully pay interest on money they borrow from the People's Bank of China. When commercial banks deposit money with the central bank, the central bank also has to pay interest. All commercial banks are under the leadership of their respective head offices. Rural credit cooperatives are under the leadership of provincial credit cooperative federations. The main thing they have in common is that banks and credit unions both deal in currency and are financial institutions supervised by the China Banking Regulatory Commission. The difference is that commercial banks are state-owned banks, while rural credit cooperatives are collective financial institutions that are joint-stock cooperatives.
Decades of practice have proven that rural credit cooperatives are constantly developing and growing. In the 1960s and 1970s, funds were weak, and rural credit cooperatives almost relied on the People's Bank of China to survive. Since the reform and opening up, especially after credit cooperatives were allowed to establish service outlets in cities and towns, credit cooperatives have experienced unprecedented development. According to statistics from the three county federations in our city, when they were decoupled from the Agricultural Bank of China, the deposit and loan business volume of each county federation was only a few hundred million yuan. Now each county federation has grown to several billion yuan, which is more than 1,000 times that of before. , this speed is amazing.
Rural credit cooperatives have a history of more than 60 years and do not go bankrupt easily. It has been more than 60 years since the establishment of dozens of rural credit cooperatives in our city, and none of them has gone bankrupt. , and there are no signs of closure. In the event of bankruptcy, rural credit cooperatives, like other commercial banks, enjoy the protection of the "Deposit Protection Regulations" for deposits within 500,000 yuan. For the portion exceeding RMB 500,000, the regulatory authorities will also inject a certain amount of funds and sell off the assets of the unit to make up for it.
With the development of rural economy and the continuous increase of farmers' income, credit cooperatives have taken a two-pronged approach and the popularity of urban outlets is no less than that of other state-owned commercial banks. The vast territory in rural areas is beyond the reach of other commercial banks. We are full of confidence in the prospects of rural credit cooperatives.
The credit union is the favorite among friends in the township! Although it is not as high-end as a bank, my dear friends, through decades of ups and downs, deposits, financial management, loans to help farmers... can be said to be the financial steward of farmers, good calculation!
The credit union has a long history, and its full name should be XX Capital Credit Union! It was established by our farmer friend, you and his two "joint pieces" of one yuan and two. Also serving friends in towns and villages! It’s regional finance! The reason why it is a credit union instead of a bank is because there are some differences from banks!
First, the difference is that the shareholders are different! Most of the shareholders of credit unions are farmers, township governments or rural enterprises, etc. Most of the shareholders of banks are social legal persons, or directly the state!
The second difference is that the objects and regions served are different! For example, villages and towns are usually used as units to provide financial services to members, friends, or farmer friends! The bank's service area is relatively wide, such as a city, a province or the whole country!
Third, the state particularly supports the work of credit cooperatives, so some indicators and management of credit cooperatives are relatively loose, so that we can better serve our farmers and friends, and serve the economic construction of towns and villages...
Having said that, there are a lot of similarities! For example, everyone enjoys equal access to deposit insurance with a maximum protection and indemnity of RMB 500,000! You can deposit, finance, loan, etc.! Now credit unions are transforming into Golden Phoenix! I believe that soon more credit societies will be transformed into rural commercial banks to provide our friends with better, more complete and higher-quality services!