Rural credit cooperatives are an important part of China's financial system. Their main task is to raise idle funds in rural areas and provide financial services for agriculture, farmers and rural economic development. Therefore, rural credit cooperatives belong to state-owned enterprises.
Characteristics of rural credit cooperatives
Farmers and other individuals in rural areas jointly form cooperative financial organizations whose main purpose is mutual assistance. Its business is managed 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.
The main sources of funds are the shares paid by cooperative members, the retained provident fund and the deposits absorbed, and the 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 development of economy, it gradually broadened the loan channels, which is no different from commercial bank loans.
Because the business object is a cooperative member, the business procedure is simple and flexible. The main tasks of rural credit cooperatives are to organize and standardize 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.