1. Fake loans reduce the quality of credit assets. This is the biggest risk of fake loans, because borrowers and loan users are separated and their rights and obligations are not equal. After the loan expires, the actual users often fail to fulfill their repayment obligations, which will mostly lead to loan disputes and seriously affect the quality of credit assets of credit cooperatives.
2. It is difficult to implement the credit management system by using fake loans. Although credit cooperatives have established a strict credit management system to strictly guard against illegal loans such as self-approved loans, ultra-authorized loans, large loans and cross-regional loans, account managers often evade the credit management system by means of false loans and posing risks.
3. Farmers, non-farmers and even enterprise legal persons who do not meet the credit loan support have obtained loan support, but it is difficult for farmers who should have received support to obtain loans, resulting in the failure to effectively implement relevant rural financial policies at the grassroots level. At the same time, it often happens that credit officers use their powers to violate credit discipline, seek personal gain by lending money, and "eat, take, card and want" from lenders, without seeing the benefits, which seriously affects the social image of credit cooperatives.
4. Credit cooperatives must bear the legal responsibilities caused by issuing loans under false pretenses, and the potential losses are likely to turn into real losses. Fake loans are often the result of collusion between employees and users of credit cooperatives. Taking advantage of his position to provide users with relevant information, he may file a civil claim with the credit union after learning that he has been impersonated. At the same time, because fake loans violate relevant financial laws and regulations, the regulatory authorities will severely investigate and deal with them, and relevant personnel suspected of violating the law will be investigated for legal responsibility retroactively.
5. Avoid the loan grading examination and approval system and issue loans beyond the authority. It violates the provisions in the General Principles of Loans that "the lender shall establish a loan management system with separate loan classification and approval" and "approval according to the prescribed authority". The directors and loan officers of some credit cooperatives, because some related parties have large loans and no collateral, and there is no hope of reporting for approval, take the methods of breaking up parts, impersonating and borrowing names to help them obtain loans.
6. Violation of the provision that large loans are generally guaranteed, making the loan risk unguarded. Article 36 of People's Republic of China (PRC) Commercial Bank Law stipulates: "The borrower shall provide a guarantee for the loan of a commercial bank." After examination and evaluation by a commercial bank, it is confirmed that the borrower's credit standing is good and he can really repay the loan. A borrower who dare not use his real name to establish evidence can not provide guarantee, which obviously does not meet the requirements of good credit standing. In this way, the borrower evaded the loan risk and left the risk to the lender.
7. Violation of the relevant provisions of the "General Rules for Loans" on the "three inspections" of loans, making the pre-loan investigation and the loan review a shield to deceive others and fool the superior inspection.
8. Generally, it is the product of collusion between users and employees of grass-roots credit cooperatives, internal and external collusion, and abuse of power for personal gain. Some credit union staff have some ambiguous relations with some private entrepreneurs and professional households, which leads to corruption. They even try their best to lend money to these people regardless of the security of credit union funds.