The Economic Analysis Of Policy Bank In The Rural Financial Resource Allocation

It has been 10 years since the foundation of the 1~st agricultural policy financeinstitution-the Agricultural Development Bank of China(ADBC) in 1994. Duringthese 10 years, not only did ADBC give great support to circulating fund of grain and cotton but also it played important roles in enhancing government's capability of macro-control looking after the national food security and raising agricultural productivity. But it can't be denied that there are still some problems among previous operation in ADBC. An overall objective evaluation on its perform and function is necessary for improving the function of ADBC fully playing its credit role to support agriculture production and increasing efficiency of the whole rural financial system. The paper intends to make a study on this.The paper is organized as follows. In introduction, the paper at first summarizes the research achievements of both domestic and overseas scholars whose research are mainly about rural finance and agricultural policy finance, which indicates that well-functioned agricultural policy finance system is a crucial factor for agricultural economic development. It also clarifies the author's study methods and possible creations and defects. Chapter 1 uses the method of comparative finance to introduce the paradigms of agricultural policy finance in several countries and finds some international successful experience in this field. The author also looks back the agricultural policy finance paradigm transition in China and then summarizes the common characteristics. Chapter 2 gives an overview of the whole rural financial system in China, in which the author separates the system into two parts—formal and informal financial systems. Institutional change in ADBC is the pivot in this part. Chapter 3 analyzes the role and functions of ADBC and does a positive study of the relativity between policy finance and the development of Chinese agriculture and rural economy. Then a conclusion can be drawn that ADBC made great contributions to the rural financial resource allocation and gave a vital impetus to agricultural economic growth. Chapter 4 analyzes the defects that exist in the rural financial system and the operation of ADBC and brings forward some policysuggestions to the reform of financial system in rural areas and ADBC on the basis of above analysis. Epilogue is a prospect to ADBC, in which the paper states that a reasonable system arrangement is the key to develop Chinese rural finance and perform the function of ADBC.