At the Seminar, Micro Credit by Rural Credit Cooperatives (RCCs), Governor Dai Xianglong called on the RCCs to boost rural economic development and farmers' income through extending the micro credit.Governor Dai said that the 30,510 RCCs, an important component of the financial system, should be the leading force to serve the rural population. About 70% of RCCs have opened micro credit business. In ten major rural provinces, like Hubei, Hunan, Sichuan, and Liaoning, micro credit has reached 40% of the rural population.In order to set up the system, a village credit committee, under the uniform leadership of the county party branch, government, and RCU, and working closely with the village party branch, resident committee, and RCC members, are being put in place to assess the creditworthiness of individual farmers. Farmers are entitled to borrow, within the credit line verified by the committee, from the RCCs. Governor Dai emphasized that the innovative micro credit and rural credit system are crucial to the rural financial reform, because farmers could thus have a better access to loans. The introduction of micro credit serves to credit culture by combating usury and protecting the farmer's interest.Governor Dai also outlined the principles for conducting micro credit and establishing rural credit system. First, the farmers' interest is always of the dominant importance. Micro credit, provided based on individual reputation, does not require guarantee or collateral within certain credit line. Second, RCCs must maintain independence in lending decisions.Third, RCC must work closely with village party branch and resident committee, which may help recommend qualified borrowers, and monitor the timely repayment. Fourth, implementation of such a practice must be based on local conditions, including fund availability of RCCs and their management capacity.
Date of last update
Nov. 29 2018
