Research On The Finance Support Policy Of Agricultural Development Bank Towards Cotton Industry Of Xinjiang Province

Xinjiang, the nation’s largest production base of commodity cotton, is dominant incotton industry, which promotes economic development, and increases farmers’ income andmakes social stable. With the regional adjustment of national cotton cultivation, thedevelopment of cotton industry in Xinjiang plays a more essential role in the nationaleconomy growth. And consequently, its problem becomes an important subject related closelyto people and nation.As the sole agriculture-policy-based financial institution in China, AgriculturalDevelopment Bank may offer the strong finance support policy on the only precondition thatthe development of cotton industry in Xinjiang Province needs the financial support. In thisthesis, the cotton industry is divided into three steps: producing, purchasing andtransformation, cotton spinning. Accordingly, the discussion has been made in accordancewith the financial support needed by those steps. The conclusion has been finally drawn thatthe Agricultural Development Bank has already made some achievements towards the cottonindustry in Xinjiang Province in such aspects as extending the support object, creating theloaning type and clearing form, establishing the loan transaction of purchasing cotton inadvance, and setting up the risk prevention system. However, it still has a series of problems:1. The credit management concept mismatches with the credit policy;2. The supervisioncould not adapt to the internal management system;3. There are few loan types aiming atthe development of cotton industry;4. The first-phase preparation on loan is not solid;5. Theloan funding procedure is heavy and complicated;6. There is much restriction of sustainabledevelopment concerning the supporting of industrialized leading enterprise;7. It is difficult tosatisfy the integrated demand towards the cotton textile industry.As far as the elements which have influenced the financial support of AgriculturalDevelopment Bank towards the development of cotton industry in Xinjiang province, thereare such external ones as the lack of national policy support, the frequency of market price development of cotton purchasing, the great risk of buying and selling markets, the unsoundmanagement system, the administration intervention of local government, the difficulty ofcotton storage, the poor credit environment, but also the restriction of such internal factors asthe irregular personnel quality of lending officers, the weakness of risk prevention and controlsystem and the distinct characteristics of policy bank.Only on the basis of adapting itself to the external environment, the AgriculturalDevelopment Bank can provide the development of cotton industry in Xinjiang Province withstronger support by means of persisting in the implement of national policy and keeping awatchful eye on the market change, extending the purview of bank authority andstrengthening the policy-based financial support towards the cotton industry; optimizing thecredit regional distribution in order to construct a support and demand platform for both thearea of purchasing and selling cotton and that of further processing; implementing thedifferential credit management, adjusting the credit policy, and guarding the loan credit risk;improving the bank management system; adjusting the credit strategy of bank’s supportingtowards the cotton textile industry in Xinjiang province. And the supporting towards cottonindustry of Xinjiang province will be made as the light spot of business development ofXinjiang branch of Agricultural Development Bank.