A Research On The Reform Of The Agricultural Policy Banking In China

Agricultural Development Bank of China (ADBC) was established on Nov 18, 1994, which subsequently integrated the segmented business of agricultural policy-oriented finance in China.Until 1998, the State Council of China decided that agricultural development loans should be stripped from ADBC. Thereafter ADBC's main business was only the Closed Operation of GrainPurchase Funds (COGPF). Though ADBC has done much for the construction of national grainreserve system, agricultural and rural economy development, ADBC is encumbered by many serious problems some of which can even exclude ADBC from existence. For this reason and for the interests of agricultural and rural social economic development and multitudinous farmers in China, conducting research on ADBC reformation and lodging scientific proposals are of great practical significance.Method combined positive and quantitative analysis and case studies on reformations of Agricultural Development Banks (AgDBs) is implemented in this article for reformation analyses of ADBC on its existing problems. The main concerns of ADBC are: obscure function orientation, Poor operation mechanism, incomplete supervisory mechanism and poor internal control. The above-said problems seriously undermine the agricultural policy-related monetary functions. To build the Agricultural Development Bank with modern corporate system, the first step to take is function orientation to be cleared, fund-raising mechanism , scientific operation system and making reform in external environment, in aim to build the bank into an agricultural policy-related bank of scientific structure, sound system, standardized management and sustainable development.