The Study On Commercial Loan Of Agriculture Policy Bank In China

Since May 2004, the Agricultural Development Bank of China has started to offer commercial loan in accordance with the requirements of the State Council. By the approval of China Banking Regulatory Committee, the Agricultural Development Bank of China can provide loans for agriculture leading enterprises, food processing enterprises and small agricultural enterprises for agricultural technology development, comprehensive agricultural development, rural infrastructure and other agricultural areas. As the scope of business continuously expanding, the Agricultural Development Bank commercial loan business scale has rapidly increased. Because Agricultural Development Bank of China commercial loan involves in all fields of agriculture, which is very special and different from commercial Bank's lending business, it can not follow the traditional way of agricultural policy bank. It is very necessary to develop commercial loan strategy of its own characteristics.The paper analyzed the status quo, the main problems and risks of the commercial loans faced by Agricultural Development Bank of China. It pointed out that there were still a number of backwards in commercial loan operations of China's Agricultural policy bank, such as imperfect credit management system, lack of sound marketing system and external legal protection and so on. These problems are to some extent affect the Agricultural Development Bank's financial role to play, restrict it to achieve sustainable development. Moreover, with the expansion of business scope, policy risk, operational risk, market risk and others faced by Agricultural Development Bank of China has increased.The Paper introduced commercialized operation experience abroad including developed market economies like Japan, Germany and emerging market economies Thailand and Malaysia. The paper drowned some revelation from the experience of the above mentioned countries.Finally, the paper put forward strategies and recommendations for agricultural policy bank commercial loan in aspect of internal reform and external environment. The paper has a practical significance in regulating commercial loan business management, risk prevention and realizing agricultural policy bank's sustainable development.