Rural credit cooperatives are credit cooperative institutions and cooperative financial institutions whose main purpose is mutual assistance. For the purpose of mutual help and self-help, they carry out deposit and loan business among their members, which is called "credit cooperatives".

Institutional nature,

Rural credit cooperatives are banking financial institutions, which are characterized by taking deposits as their main liabilities, granting loans as their main assets, and handling transfer and settlement as their main intermediary business, and directly participating in the process of creating deposit currency.

Rural credit cooperatives are cooperative financial organizations composed of farmers' shares, which are democratically managed by shareholders and mainly serve them. They are legal financial institutions approved by the People's Bank of China.

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. At the same time, organize and adjust rural funds, support agricultural production and comprehensive rural development, support various forms of cooperative economy and family economy, and limit and crack down on usury.

Extended data:

mechanical feature

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, which 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 task of rural credit cooperatives is to organize and adjust rural funds to support agricultural production and comprehensive rural development in accordance with the provisions of national laws and financial policies.

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