A Study On The Banking Business Reform Of China Agricultural Development Bank

Agricultural Development Bank of China (ADBC) is China's only an agricultural policy bank. After 20 years of development, it has been unable to fully adapt to the new changes in rural financial markets and rural economic development, due to the unclear functions of positioning, narrow scope of business, out of date corporate governance and other issues. All of these restricts itself to sustainable development and to effectively play the role of benefiting the agriculture, therefore it needs the strategic transitionof business to ensure better implementation of national policy intentions, and better serve the agriculture, farmer and rural area.At present, the domestic research on Agricultural Development Bank of China focused more on the "need for transition", "to whereto transit". Under the background that the State Council approved the Agricultural Development Bank of China's overall reform plan, which clearly confirm that ADBC mainly focuses on policy-related business, and uses account management and accounting classification, this paper is the first to investigate the direction of business restructuring and transition, by drawing on the agricultural policy finance theory, learningexperience from foreign agricultural policy bank business practice, combined with the reform and development experience and current developments in ADBC forthe last 20 years. This paper discusses how Agricultural Development Bank to actively explore not only fully functional agriculture, but also to achieve sustainable and healthy development path of its own choice.This article describes the background to the establishment of the Agricultural Development Bank, the development process and the development of situation, analyzes the factors restricting business transformation of power and promote business transformation of the Agricultural Development Bank, illustrates the necessity and importance of business transformation; In addition, I further compare the agriculture-related business among China Agricultural Development Bank, China Agricultural Bank, and Rural Credit Cooperatives, based on the analysis of supply-demand curve in rural area. Moreover, I introduce the advanced experience from developed countries in terms of developing financial system in agriculture and provide suggestions and implications for the business transition of China Agricultural Development Bank.