China – Planning Assistance for Rural Credit Cooperatives

Helping to Transform RCCs into modern institutions

In 1996 and 1997, ACDI/VOCA advised and assisted the People’s Bank of China in preparing a strategic plan for reforming Rural Credit Cooperatives (RCCs) in China. Funded by the Asian Development Bank, ACDI/VOCA assistance resulted in a detailed blueprint for transforming RCCs into modern institutions consistent with China’s financial sector reforms. As a basis for the plan, ACDI/VOCA consultants conducted a three-month study of RCCs and county Rural Credit Cooperative Unions (RCCUs). This study included on-site examinations of eight RCCs and six RCCUs. These incisive assessments augmented extensive consultations and seminars with senior officials of the Central Bank of China, the Agricultural Bank of China and national RCC leaders. Planning focused on the organization and structure of modern RCCs, transforming RCCs and RCCUs into member-owned cooperative institutions, creating guidelines for the regulatory and supervisory function of the People’s Bank of China, designing a nationwide payment and clearing system, and creating a detailed plan for implementing the reform strategy.