Farmers In Wenzhou Earn One Hundred Million In 1 Years

　 08, 20, Wenzhou Longwan rural cooperation Bank Founded in June 2005, nearly 4000 of the 4639 shareholders who invested in the shares were farmers. In 2007, the bank, which was raised by the farmers, handled the shares. loan About 4 billion yuan, of which more than 60% invested in rural areas, and realized a profit of 112 million yuan.

The Guangzhou Daily reported on October 28th that the Central Committee of the Communist Party of China issued a decision on promoting some major issues in rural reform and development. Finance The organization integrates funds from financial institutions and allows qualified farmers' professional cooperatives to carry out credit cooperation. The paper points out that to establish a modern rural financial system, rural finance is a modern rural area. Economics The core. So what are the practical problems faced by rural development finance organizations? The practice of Wenzhou can be used as a reference.

The Rural Cooperative Bank of Longwan, Wenzhou, was formally established in June 2005. Nearly 4000 of the 4639 shareholders who invested in the stock were farmers. In 2007, the farmer's bank paid a total loan of about 4 billion yuan, of which more than 60% went to the countryside and realized a profit of 112 million yuan. Investing in rural cooperative banks has become the most popular investment project in Wenzhou.

As early as in 2003, Zhejiang became the pilot of the first batch of rural credit cooperatives to reorganize rural cooperative banks. Many restructured rural cooperative banks in Zhejiang have carried out the practice of farmers' micro credit loans and farmers' joint guarantee loans. Recently, our reporter came to Wenzhou, a thriving rural cooperative bank.

On the afternoon of October 20th, the Longwan rural cooperative bank's Dragon Water Branch of Longwan Road, Wenzhou, Henan Province, was busy. The bank hall was full of local farmers who came to deal with business. Xia Zengrong, a 50 year old farmer in Wenzhou, is handling a loan of 50 thousand yuan at the bank. In a short while, Xia Zengrong managed the business.

Nearly 90% of bank shareholders are farmers.

The Longwan rural cooperative bank was established in June 25, 2005. It is a local financial institution established by the original credit union of Longwan and the credit union under its jurisdiction, and is raised by 140 million shareholders of 4639 shareholders. More than 4000 of all shareholders are local farmers in Longwan (including rural self industrial and commercial households), accounting for about 88%.. In addition, there are 333 business shareholders and 249 bank employee shareholders, without any state capital.

At present, Wenzhou has already transformed the rural credit cooperatives in Longwan, Lucheng, Ouhai, Yueqing and Ruian into rural cooperative banks, and their models are very similar.

Why are there so many farmers' shareholders? Li Xinhong, President of Longwan rural cooperative bank Long Shui branch, said that in June 2004, Longwan rural cooperative bank publicly issued a notice to Longwan villagers, inviting them to share shares, 1 yuan and 1 shares.

At that time, the villagers were very enthusiastic about the stock market, far more than the shares they wanted to raise. Finally, the number of subscription can only be discounted, "like 30 thousand yuan can not buy 30 thousand shares, can only buy 20 thousand shares, more money back." Wenzhou's abundant private capital contributed to the birth of the rural cooperative bank.

Since 2003, China launched the first batch of rural credit cooperatives to reorganize rural cooperative banks in Zhejiang. In April 8, 2003, the Yinzhou bank, which was restructured from 52 rural credit cooperatives in Yinzhou District, Ningbo, was officially opened and became the first rural cooperative bank in China.

At present, many provinces in China have begun to set up rural cooperative banks, which has supported the development of rural areas through increasing lending and improving services. However, from the current situation, the development of rural cooperative banks has also encountered some problems, such as high non-performing loan ratio, large operating risk and intense competition in financial industry. The good operation of Wenzhou rural cooperative bank has provided a useful reference for solving these problems.

Since the public offering and the official opening, the benefits of Longwan rural cooperative bank have been good. Xia Liyun, director of the office of the Longwan rural cooperative bank, said that in 2004, 2005 and 2006 for three consecutive years, the dividends paid by banks to shareholders were not paid in 15%.2007, but increased by 20%. The return of shareholders was quite high.

High dividends are maintained by good management. Xia Liyun said that at present, the bank has developed to 16 sub branches and 32 business outlets, all located in Longwan district. In 2007, the Rural Cooperative Bank of Longwan totally absorbed 5 billion 600 million yuan in loans and 4 billion 17 million yuan in loans, of which agricultural loans accounted for more than 60%, and realized 112 million yuan in pre tax profits. And this year's profits must exceed last year's.

Credit farmer loans need not be mortgaged

An important source of profits is to grant small loans to farmers. Li Xinhong said that there are mainly three ways of lending to local farmers, one is the small loans of farmers, the amount is less than 50 thousand yuan, which needs collateral or guarantee. Two is the credit loan, the amount is less than 50 thousand yuan, does not need any mortgage, also does not need the guarantee. There are farmers' joint guarantee loans ranging from 100 thousand yuan to 300 thousand yuan. The 5 farmers are jointly insured. If the lender can not repay the money, the other 4 people will repay the money. "This has played the role of risk sharing, mutual trust and mutual protection."

Li Xinhong said that the first step is to establish peasant household credit. The dragon water branch has launched the credit village and the credit farmer's appraisal to the 4815 farmers in the area. If the farmers' loans do not exceed 90% of the overdue repayment, the village will be rated as a credit village. If the villagers do not have a loan for a long time, they can be rated as a credit farmer.

At present, the dragon water branch has assessed 4 Credit villages and 340 credit farmers. Among them, credit farmers accounted for about 20% of total loans.

Li Xinhong said that on loan interest rates, credit farmers will enjoy a preferential interest rate of 6/1000 three per month, which is about 35% lower than that of non credit households. At present, none of the bank's credit village loans are overdue.

Agricultural cooperative bank's profits also come from loans to local leading enterprises in rural areas. Wang Shaohe, governor of the Longwan branch of the Cooperative Bank of Shanghai, said that all 4 to 6 credit scoring companies in the jurisdiction could enjoy joint guarantee loans from small businesses.

In addition, the Longwan rural cooperative bank has paid wages for private enterprises. It has already started to pay the water and electricity charges for thousands of farmers and provide farmers with consumer loans and housing loans. "The connotation of the three rural loans has expanded."

Li Xinhong said that in the annual intake of more than 200 million yuan in the dragon water branch, nearly 100 million yuan came from individual farmers' deposits.

The rate of bad loans is very low.

According to the introduction, in 2007, the dragon water branch took 257 million 450 thousand yuan of deposits and loans 196 million 290 thousand yuan, of which 92.37% of agriculture related loans accounted for 92.37%, with a total of only 130 thousand yuan of non-performing loans, and the rate of bad loans was only 0.07%. while other branches had a bad loan rate of 0..

Why is the rate of bad loans so low? Wang Shaohe said that the low rate of bad loans is related to credit construction, relatively abundant private capital in Wenzhou and better credit environment in Wenzhou. "In Wenzhou, where the acquaintance's economy plays an important role, fame is very important. Once credit is out of the question, the person will be isolated, and the binding force of social environment will make people dare not to repay it easily."

Besides the big ring, the bad loan rate is low and the internal system is guaranteed. If a bad loan is generated, the first investigator of the bank will bear 70% of the liability, and the approver will bear 30% responsibility.

Xia Liyun is very satisfied with the current situation of Longwan rural cooperative bank. "Now we have become the best bank in Longwan. Compared with domestic commercial banks, although they are at a disadvantage in hardware, they have unparalleled advantages in human resources. We all know farmers who marry or kill pigs today. We are the real local farmers' own banks. "

At present, joining the rural cooperative bank has become the most popular investment in Wenzhou. "Someone has bought shares of Longwan rural cooperative bank at a price of 3 times, but it is also hard to get."