Rural credit cooperatives, namely rural credit cooperatives. Refers to the rural cooperative financial institutions established with the approval of the People's Bank of China, which are composed of members' shares, implement democratic management and mainly provide financial services for members. Rural credit cooperatives are community-based local financial institutions composed of farmers, individual industrial and commercial households and small and medium-sized enterprises within their jurisdiction, and are an important part of China's financial system. Its main task is to raise idle funds in rural areas and provide financial services for agriculture, farmers and rural economic development. Rural credit cooperatives are becoming the main force of rural finance and the financial link connecting farmers.
Rural credit cooperatives first appeared in Germany, and the first rural credit cooperative in China was 1923, which was established in Hebei Province. The first rural credit cooperative was established because China was in dire straits at that time, and the government was unable to regulate and stabilize the economy. As a result, patriots at home and abroad set up the China Relief Corps and the first rural credit cooperative in China. At that time, cooperatives had a great response in China because of their nature of self-help and mutual assistance. Since then, rural credit cooperatives have blossomed everywhere in China.
The most obvious difference between rural credit cooperatives and rural commercial banks is the property right system. Rural credit cooperatives refer to rural cooperative financial institutions established with the approval of the People's Bank of China, which are composed of members' shares, implement democratic management and mainly provide financial services for members. Rural credit cooperatives are independent enterprise legal persons, which 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 according to law are protected by state laws. Its main task is to raise idle funds in rural areas and provide financial services for agriculture, farmers and rural economic development.
Rural commercial banks, referred to as rural commercial banks for short, are joint-stock local financial machines composed of farmers, rural industrial and commercial households, enterprise legal persons and other economic organizations within their jurisdiction.
In Hunan, the reform of rural credit cooperatives is also in full swing. In the process of promoting the property right reform of rural credit cooperatives, Hunan Rural Credit Cooperatives focused on the integration of urban institutions and the reform of high-risk institutions, and focused on the collection and disposal of non-performing assets. By the end of June 2007, 97 rural commercial banks had been established in Hunan Province. By then, Hunan Rural Credit Cooperatives will all be transformed into rural commercial banks.
In short, rural commercial banks are an upgraded version of rural credit cooperatives. Through the shareholding system reform, the ownership of property rights will be clearer and the development route will be clearer.