Case Study Of Credit By Assuming Others’ Name In XinKaihe Rural Credit Union, Liaoning Province

In recent years, with the gradual fade-out of agricultural bank and the restriction ofthe agricultural development bank policy role, rural credit cooperatives become one ofthe main force of rural finance. Under the guidance of national policy, rural creditcooperatives are committed to meet the modern market economy of socialism newcountryside, improve the rural financial environment and improve the standard ofpeasants’ lives. It is proved that rural credit cooperatives play an important role insupporting the rural economy.As the basic business of the rural credit cooperatives, the micro-finance businesscontact with the economic life of farmers very closely. Therefore, it has great influenceon rural financial market. Grameen bank was introduced to China in1993. After years ofpractice and development, micro-finance has Chinese characteristics and better met thedemand of rural financial. The loan is without collateral and the amount is small, it isconvenient and fast. It is an effective tool of rural poverty alleviation by offeringfinancial services to farmers and meeting the needs of the reality of the rural financialmarket. It is an important part of rural finance.However, micro-finance extensively developed across rural areas.Due to its uniquefeatures and characteristic of the rural financial market risk, rural credit cooperativesfaces very prominent credit risk in the process of issuing micro-finance, especially loancredit risk caused in the form of assuming others’ name become increasingly frequent. Ithas brought great challenges to rural credit cooperatives in the service of "three rural"work and bad influence to the public reputation of the rural credit cooperatives.Therefore, it’s significant to further study the rural credit cooperativesmicro-finance.In order to make micro-finance play a better and continuous role in theservice of agriculture, it is necessary to carefully analyze the operation of micro-finance,especially the loan by assuming others’ names. For the healthy development of the ruralmicro-finance, this paper will analyze the reasons and the influence of the loan byassuming others’ names through the case study of Liaoning province Xinkaihe ruralcredit cooperative.