What are the characteristics of rural commercial banks? What are the advantages of rural commercial banks?

Rural commercial banks are rural commercial banks, which are joint-stock local financial institutions composed of farmers, rural industrial and commercial households, enterprise legal persons and other economic organizations within their jurisdiction. Although the identity of farmers served by credit cooperatives has not changed, most of them no longer engage in agricultural production and labor based on traditional farming, and have less requirements for supporting agriculture services. Credit cooperatives have actually implemented commercial operation.

Advantages:

1. Localization advantages. Rural commercial banks have long been based on the rural financial market and played an irreplaceable role in the rural financial market. Rural commercial banks have distinct institutional location and community distribution, and have more and wider connections with their local areas than other financial institutions, which can be described as local "grassroots banks". The government defines rural commercial banks as agriculture, countryside and farmers. While receiving state support, it also undertakes a large number of business designated by the government, which is often cumbersome, but the benefits are not great. But it also enables rural commercial banks to operate at the grass-roots level (village) and keep close contact with the masses, which other institutions do not have.

2. Advantages of fund control. The main funds of rural commercial banks come from surrounding communities, but they rarely transfer the funds absorbed locally to other places like big banks. Instead, relying on their own understanding of the local market, the main credit targets are small and medium-sized enterprises and individuals in the community, and farmers and small and medium-sized enterprises are invited to become shareholders of rural commercial banks.

3. Advantages of information acquisition efficiency. Rural commercial banks have low management level and flexible operation mode. Based on the geographical advantages of rural commercial banks, they have accumulated a lot of credit information knowledge for known and potential customers. When it is necessary to have a credit business relationship, they can have the ability of quick decision-making and flexible disposal of customer needs without spending too much time collecting and processing the borrower's credit information, so as to meet the loan needs of small and medium-sized enterprises in time and gain greater advantages than other commercial banks in the market competition.

Rural commercial banks, referred to as rural commercial banks for short, are joint-stock local financial institutions composed of farmers, rural industrial and commercial households, enterprise legal persons and other economic organizations. Rural cooperative banks should all be restructured into rural commercial banks.