Study On Credit Risk Management Of Agricultural Policy Bank In China

According to"the notice about formation of Agricultural Development Bank of China", which was issued by state council of the People's Republic of China on 19 April 1994, Agricultural Development Bank of China established as a state-owned agricultural policy Banks. Its main task is: according to the national laws, regulations and the policy, with the national credit as the foundation, raise the agricultural policy credit funds stipulated by the state, provide commercial finance services related to agricultural which are approved by national agricultural policy, agency financial support fund for agriculture and rural economic development.No matter to commercial banks or policy banks, risk is the general features. As an important part of policy finance, although Agricultural policy bank puts the policy objectives on the first place, but the bank also have to follow the basic rules and operation mechanisms to prevent and reduce risk in its management process. For the agricultural policy banks, currently, credit risk or loans credit risk is still the most prominent in their risk structure. Therefore, in the present and for a future period, it is practically important and objectively necessary to strengthen the researches on credit risk management to agricultural policy banks.For provides theoretical support to the credit risk management of agricultural policy bank, this article based on the explanations of Chinese agricultural policy bank's background, major functions, and its credit risk's concept, types and characteristics, the causes and influence of Chinese agricultural policy bank's credit risk have been discussed, and the necessary of prevention and reduction for the credit risk has also been shown; furthermore, several successful model and examples about risk management of agricultural policy bank in developed countries and developing countries would be introduced. Finally, according to the analysis, put forward some effective measures and countermeasures about prevention and control credit risk such as prefect the management mechanism of credit policy funds, enhance the level of risk identification, and strengthen the credit team building.