Wenxian Rural Credit Cooperative Association(wen xian nong cun xin yong he zuo lian she )

Rural credit cooperatives

Rural Credit Cooperatives (RCCs) refer to the rural cooperative financial institutions established with the approval of the people's Bank of China, which are composed of members with shares, implement democratic management and mainly provide financial services for members.

Rural credit cooperatives are independent enterprise legal persons. They are responsible for the debts of rural credit cooperatives with all their assets and enjoy civil rights according to law. Its property, legitimate rights and interests and business activities carried out in accordance with the law shall be protected by state laws. Its main task is to raise rural idle funds and provide financial services for agriculture, farmers and rural economic development. In accordance with national laws and financial policies, we should organize and regulate rural funds, support agricultural production and comprehensive rural development, support various forms of cooperative economy and member family economy, and restrict and crack down on usury.

Rural credit cooperatives are divided into the following departments: rural credit cooperatives, international financial department of rural credit cooperatives, Zhengtong rural credit cooperatives training school, credit department of rural credit cooperatives, etc., which are currently under the dual leadership of the CBRC and the State Council.

management system

As early as the 1950s, the outlets of the people's Bank of China in rural areas were changed to rural credit cooperatives. The purpose of rural credit cooperatives is "farmers help each other in funds", that is, farmers form credit cooperatives, members contribute money to form capital, members can borrow money.

Relationship with branches

The relationship between the county association and a single credit union is equivalent to the relationship between the head office and the branch.

In a county, there is a county association, which is under the management of the Agricultural Bank of China at the beginning; after 1996, it is under the management of the people's Bank of China; after 1999, the people's Bank of China gradually established the prefecture (city) association, and the county association is under the management of the prefecture (city) Association; after 2003, the people's Bank of China withdrew, cancelled the prefecture (city) association, and handed over the management power of the rural credit cooperatives to the provincial government The government also set up the Provincial Association, which is in charge of the County Association.

So far, from the economic and legal point of view, each county association is equivalent to an independent bank (enterprise), the actual owner is the provincial government, and the county associations in the province jointly take shares to form the Provincial Association, so the provincial association is actually the "son" of the County Association; from the administrative point of view, each county association is an administrative department to manage the credit union, and the provincial association is the "son" The highest administrative department, so the provincial association is the "Laozi" of the County Association. Because of its higher administrative status, the Provincial Association has become the actual manager of the County Association.

Nature of organization

Rural credit cooperatives are banking financial institutions. The so-called banking financial institutions are also called deposit institutions and deposit currency banks. Their common characteristics are that they take deposits as the main liabilities, take loans as the main assets, take transfer settlement as the main intermediary business, and directly participate in the creation process of deposit currency. Rural credit cooperatives are also credit cooperative institutions. The so-called credit cooperative institutions are cooperative financial institutions formed by individual fund-raising, with mutual assistance as the main purpose, referred to as "credit cooperatives". For the purpose of mutual assistance and self-help, they carry out deposit and loan business among members. The establishment of credit cooperatives is directly related to the development of natural economy and small commodity economy. Due to the seasonal, scattered, small amount and small-scale characteristics of agricultural producers and small commodity producers, it is difficult for small producers and farmers to get the support of bank loans. But objectively, the development of production and circulation must solve the problem of capital shortage. Therefore, this kind of mutual aid and self-help credit organization is established by means of paying shares and deposits .

Rural credit cooperative is a cooperative financial organization, which is composed of farmers' shares, implements democratic management of the members and mainly serves the members. It is a legal financial institution approved by the people's Bank of China in accordance with the law. 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, we should organize and regulate rural funds, support agricultural production and comprehensive rural development, support various forms of cooperative economy and member family economy, and restrict and crack down on usury.

Institutional features

As a banking financial institution, rural credit cooperatives have their own characteristics

1. The cooperative financial organization, which is jointly formed by farmers and other individuals in rural areas and whose main purpose is mutual assistance, is managed and operated by the staff designated by the members on the basis of democratic election and is responsible for the members. The highest authority is the member congress, and the executive body responsible for the management and operation of specific affairs is the Council.

2. The main sources of funds are the shares paid by the cooperative members, the reserved provident fund and the deposits absorbed; the loans are mainly used to meet the financial needs of the members. At first, it mainly issued short-term production and living loans and consumer loans. Later, with the economic development, it gradually widened the lending channels, which is no different from commercial bank loans.

3. As the business object is a member of the cooperative, the business procedures are simple and flexible. The main tasks of rural credit cooperatives are: to organize and regulate rural funds in accordance with national laws and financial policies, to support agricultural production and comprehensive rural development, to support various forms of cooperative economy and member family economy, and to restrict and crack down on usury.

lending rate

Legal interest rate: all kinds of interest rates approved and authorized by the State Council and formulated by the people's Bank of China are legal interest rates. The head office of the people's Bank of China shall be responsible for the promulgation and implementation of the statutory interest rate.

Benchmark interest rate: the deposit and loan interest rates of the people's Bank of China to commercial banks and other financial institutions are the benchmark interest rates. The benchmark interest rate shall be determined by the head office of the people's Bank of China.

Contract interest rate: the interest rate of a specific loan that the lender has agreed with the borrower according to the legal loan interest rate and the floating range specified by the people's Bank of China and specified in the loan contract.

With the approval of the State Council, the people's Bank of China has decided to fully liberalize the control on loan interest rates of financial institutions since July 20, 2013.

1、 The lower limit of 0.7 times of the loan interest rate of financial institutions will be abolished, and the loan interest rate level will be determined by financial institutions independently according to commercial principles.

2、 There will be no upper limit on the loan interest rate of rural credit cooperatives.

Loan conditions

When applying for a loan, the borrower shall meet the following requirements: the products have a market, the production and operation are efficient, the credit funds are not misappropriated, and the credit is strictly observed

1. Have the ability to repay the principal and interest on schedule. The originally payable loan interest and due loan have been basically paid off; if not, the repayment plan approved by the lender has been made.

2. Except for natural persons and institutional legal persons who do not need to be approved and registered by the industry and Commerce Department, they shall go through the annual inspection procedures of the industry and Commerce Department.

3. Rural areas have opened a basic account or general deposit account in the loan cooperatives, and keep a certain amount of payment margin in the account; they voluntarily accept the supervision and inspection of the credit and settlement of the loan cooperatives, and can ensure that they regularly submit business plans and relevant business and financial statements to the loan cooperatives.

4. An applicant for a guaranty or mortgage loan must have a qualified loan guarantor, mortgage or pledge. The loan guarantor must be an enterprise or economic entity with good economic benefits and credit standing and opening a deposit account in rural credit cooperatives. The loan collateral must comply with the guarantee law of the people's Republic of China and relevant laws and regulations. In principle, it should be mainly real estate (such as housing and land), and should be commercial and easy to realize.

5. The asset liability ratio of rural borrowers shall not be higher than 70%.

6. When applying for loans for fixed assets, real estate and other projects, the owner's equity and the proportion of self raised funds of the borrower must meet the requirements of the State Council, and at the same time, complete, standardized and effective documents must be submitted according to the requirements of project management.

7. Except as stipulated by the State Council, the accumulated amount of equity investment in foreign equity of limited liability companies and joint stock limited companies shall not exceed 50% of their net assets.

8. Rural borrowers must apply for loan cards in accordance with the provisions of the people's Bank of China and go through the annual inspection procedures as required.

Lender conditions

1. Conditions of community loan and its borrower:

(1) The borrower is a shareholder member of the community loan leading society and has opened a deposit account in the society.

(2) The purpose of the loan is in line with the national industrial policy, the production and operation are normal, the business performance is good, and the loan principal and interest can be paid on schedule.

(3) Good credit, no bad loan record.

(4) Can provide effective guarantee or chattel, real estate, equity mortgage (pledge).

(5) Other conditions specified by the lender.

2. The main contents of the loan review meeting are as follows:

(1) Whether the loan is legal and in line with the national industrial policy and credit policy.

(2) Loan pricing and its comprehensive benefits.

(3) The risk of loan and preventive measures.

(4) Other contents to be considered according to the loan project.

Chinese PinYin : Wen Xian Nong Cun Xin Yong He Zuo Lian She