But in practice, many co-ops shifted into riskier forms of - TopicsExpress

But in practice, many co-ops shifted into riskier forms of lending. Jiangsu, along with neighboring Fujian province, is known for its vibrant grey-market lending networks, serving small factory owners and real estate developers who often cannot obtain bank loans. Informal lending generally occurs through family and friends, but the rise of farmers co-ops created a platform for informal lenders to scale up their operations by collecting funds in a bank-like setting.

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