China's Agricultural Policy Bank Operating Mechanism

In 1994, the Agricultural Development bank of China (ADBC), the first agricultural policy related financial institute was constructed, as the important part of the country finances, it played a role to service, support, promote and regulate the agriculture and the country economics. However, with the development of ADBC and the corresponding new responsibilities and new challenges, there are problems arising gradually in the management mechanism, which already have become the obstacle and emphasis of the economic reform.In this paper, the construction, development, management regulations and content, characteristics of ADBC are introduced, and the analysis of the necessary conditions of enhancing the management is provided. Then the existing problems in management mechanism, such as responsibility orientation, benefits compensation, capital raising, legal endurance, self management, risk detainment, management mechanism, self control mechanism, simulation restriction mechanism, technical support, etc. are investigated. On the other hand, the experiences of other two policy related agricultural banks in china and the policy related agricultural banks in the world are analyzed and compared. Finally the concrete solutions for the existing management mechanism problems of the development bank of china are provided. The paper aims to investigate the real problems, solve the real problems, and propose the beneficial opinions for the reform and sustainable development of ADBC based on the development history and practice of the ADBC during the past ten years.