The incident of being loaned warns the security of rural finance

Many farmers in Tianzhen County, Datong City, Shanxi Province found that they were inexplicably burdened with loans and overdue. The loan bank is the Tianzhen County Rural Credit Cooperative Union. The story spread ten times a hundred, and many local people, fearing that the same thing would happen to them, queued up at the local people's Bank for inquiries. The banking supervision department instructed the Tianzhen County Credit Union to conduct self-investigation. Local police said that more than 50 people had "been loaned" to report the case, but the case had not yet been filed. (Beijing Times, July 13)

When we worry about whether the green stock market will transmit capital market risks, in rural areas, if the supervision of grass-roots financial institutions with credit cooperatives as the main body is out of control and the system is out of control, the economic and social risks should not be underestimated.

How many farmers in Tianzhen County have been "loaned"? This issue is no longer a matter of personal privacy, but a public issue related to the local public interest and the stability of order. According to the police, more than 50 people reported the case, and a staff member of the local people's Bank of China, who was in charge of the inquiry, said that "hundreds of people questioned by him indicated that they had been granted loans under false names." It is worth noting that the local personal credit inquiry has been ranked after January 4, 2016, and the total number of "loaned" farmers is likely to exceed three digits.

How many people and how much money have been secretly held by local credit cooperatives? Of course, this needs to be carefully investigated by functional departments, but what is more worth asking is that such a large number of suspected loan frauds are neither discovered by routine inspections by local banking regulatory departments, nor are they exposed by internal reports. It is only when farmers go to loan that they "accidentally" learn that the strict and meticulous financial system has thus become a deaf-mute.

According to the search news, similar cases such as "Zhejiang Yanling credit cooperatives withdrew 1.5 million yuan from the bank and sealed with money after being reported" and "credit cooperatives issued loans to dead people caused guarantors to fall into a credit crisis" are not uncommon. As early as 2009, the media revealed that many rural credit cooperatives in Shanxi had fallen into an unprecedented "credit crisis", with missing deposits, illegal lending and so on. Until 2011, there were still media warnings that "major cases" of credit cooperatives occurred frequently, and taking Henan as an example, this paper analyzed more than a dozen major corruption cases of credit cooperatives: three provincial credit union leaders "former corruption successors", Shangqiu credit cooperatives "small directors" committed "shocking cases" …... Unfortunately, after so many years, rural credit cooperatives still become a high-risk area of grass-roots financial risks. In the words of the industry, "due to a wide range of points, management difficulties, coupled with the management system is not really perfect, internal management is relatively weak, the quality of staff is generally low and other factors, the credit union system has almost all the conditions for operational risk."

Judging from the "loan" incident in Tianzhen County, Shanxi Province, the absurdity of the credit procedure of local credit cooperatives can be said to be outrageous. General commercial and financial loans, all have to face-to-face examination, face-to-face, but the person has not appeared, the signature is also forged, such a batch of loans unexpectedly in Tianzhen County went on like this. From implementation to audit, from control to supervision, how many normal institutional constraints are missing? The investigation of this kind of thing is not complicated, and the verification of signatures should be able to find out. In the face of hundreds of people suspected of being "loaned", the local banking regulatory department only instructed "self-investigation" and the police did not file a case. Is this too irresponsible?.

The total amount of funds of rural credit cooperatives may not be enough to talk about, but it mostly involves the hard-earned money of tens of millions of farmers, which is related to agricultural development, farmers' livelihood and rural stability. According to the Annual report of the China Banking Regulatory Commission 2013, at the end of 2013, there were 2393 legal bodies in rural credit cooperatives, agricultural commercial banks and agricultural cooperative banks, accounting for 60.6% of the total number of banking legal institutions in the country. Under the background of financial mixed reform in full swing, paying attention to rural financial security and supervising credit risks at the grass-roots level is also a major issue related to the national economy and the people's livelihood.