“Rural Cooperation Foundation” – “County and Township Banks” during the Reform and Opening-up Period

Original link:https://blog.othing.xyz/archives/ns-cy-jk-ji-he-zo-ue.html

It was sprouted in 198X, and a run on thunder began to occur around 1996. The Asian financial crisis in 1997 made the government make up its mind to ban it, and it was almost completely banned around 2000.

At that time, the foundation was dominated by the township and township government, which absorbed savings in the name of buying shares, and distributed dividends in the name of paying dividends. In 199X, there was inflation and there was a shortage of funds in the market. The annual interest rate of the bank often fluctuated at 10%. If you had a little money, you could live on the interest, and the foundation gave a few points higher than the bank, so Back then people put large sums of money in foundations, not serious banks.

The systematic reasons for its development, explosion, and ban will not be discussed. The paper attached to this article (see the end of the article) makes it very clear.

However, the materials and papers I simply found on the Internet did not clearly state the specific plan for dealing with the thunderstorms that spread across the country that year.

In that year (1996), the funds of some foundations bottomed out, and the reserves of many foundations fell below 15%, and some even fell below 1%. When a run on the bank broke out, the county and township authorities in charge of the foundation asked for emergency funding from the higher-level government, but at that time, the total fundraising scale of the foundations in various places exceeded 70 billion (70 billion at that time), and most of them were lent out indiscriminately. Bad debts that can hardly be recovered, such a large amount, what should I do?

I don’t know about other places. At that time, we in Chongqing seemed to deal with it this way. If the deposit in the account exceeds 100,000 (the specific amount cannot be verified, the information comes from my father), a capital report needs to be written to explain the reasonableness of your large deposit. Legal source, otherwise closed.

My guess: Considering the serious corruption of cadres and the serious loss of collective assets / misappropriation in 198X (collective assets in some places shrank by 80%), these people’s “illegal income” may not dare to deposit in banks, and prefer to invest in foundations (After all, the foundation is not under the control of the central government and higher-level governments, and the brothers in it are all acquaintances, so they can talk easily and have high interest.) Therefore, it is impossible to write a capital report. Naturally, the money saved by these people will be gone.

The situation in Chongqing/Sichuan should be relatively controllable in those years, and the ordinary people who made money for nothing were not “injured” (there is no evidence to prove it here). But I don’t know if there are more helpless and extreme ways to deal with it in other regions.

There is nothing wrong with preferring higher interest rates, but when you choose financial products that are higher than the benchmark interest rate (currently 1.5%) (for example, “Yuzhou Xinminsheng Rural Bank” in Henan offers a high interest rate of 1.85% for current deposits, deposits 6% super super super super interest rate for more than 50 days), you may have to take some risk yourself.

Based on this, is your claim legitimate? Seems a little illegal. Does the government have the bottom line? You can go without saying. This situation seems to be somewhat similar to 1996? Except at that time, there were no executives who ran away with money.

As of this writing, I went to Wikipedia to find the ” Rural Cooperative Foundation ” entry, and was surprised to find that this entry was only created 12 hours ago.

Attachments – References

(If the chain is broken, you can go to the comment area of ​​the Telegram channel to download)


The above content does not fully speak from the perspective of savers as victims. After reading it, please be careful not to fall into the misunderstanding of ” blaming the victim ” (also known as: the perfect victim).

Written on 2022/07/12

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