Improving Management Of Agricultural Policy Banking In China

Established in November 18th, 1994, Agricultural Development Bank of China (ADBC) has consolidated agricultural policy finance from the four major state-owned banks. The consolidation results in separation of commercial finance business from agricultural policy finance business in China. ADBC has met the financial needs of grains and cotton circulation, and promoted the establishment of grains reserve system. However, problems did happen in ADBC's management and operation although it has done great contribution to agricultural and rural economy development in China. To improve its management, strengthen its function in rural-oriented finance and improve rule financial resources allocation, objective and all-round evaluation of ADBC' efficiency and effectiveness is needed.With strengthening ADBC's management as its main topic, this thesis analyzes management problems in ADBC.- Deviation of ADBC's policy and goal from those of the state - Ineffective internal governance - No motivation - Unclear external relationship - Unsatisfaction of market-economy requirement - Absence of legal foundationConclusion of international management trend in agricultural policy banking is drawn upon the analysis and comparison of agricultural policy banks in both developed countries (U.S. and Japan) and developing countries(Thailand and India). Some good and practical experience can be introduced in China: - Market-oriented policy - Search for sustainable development mode - Organization development of agricultural policy financial institutions - Emphasis of agricultural policy bank's role in supporting agriculture and rule development - Favorable policy given to agricultural policy banks - Legislation and legitimatizationIn consideration of the reality in China as well as the successful experiences in other countries, suggestions are given on the basis of above analysis and research. - Change function and adjust mission as "realization of two benefits" - Adopt market-oriented operation mode into agricultural policy bank - Include agricultural policy bank into government finance budgeting system - Develop and improve relevant laws - Strengthen institutional management and local administration - Foster corporate culture development...