Risk Management Research Of The Key Construction Fund For Agriculture And Development

The national construction fund is an important innovative tool to deal with the economic downturn in recent years.It is a decisive means of achieving steady economic growth,promoting reform,adjusting structure and benefiting the people.The agricultural development bank of China and China development bank issue bonds in the inter-bank mark to raise the national construction funds,and the funds invest into the construction of specific projects in a capital-investment way,in order to sustain certain public welfare areas for instance urban infrastructure,large water conservancy,broadband rural,shanty town renovation,it is used to enhance economic growth in china.Agriculture development bank of China(abbreviation:ADBC)implement the mission of policy bank and established the key construction fund for agriculture and development(abbreviation:the fund)in accordance with national policies.The funds act as a "visible hand" in macro-economic control;It has played an active role in easing downward pressure on the economy.However as a result of the fund is a kind of new financial instrument,there is no mature model can be guide,moreover the limited investment time,lots of project,widely areas lead to adequately research and scientific argumentations failed before investment,and further bring some issues to the project follow-up management.Most of the issues have been transformed into financial risk,policy risk,credit risk,moral risk,market risk,liquidity risk,operation risk and so on in different levels.How to manage the risk of the fund effectively is an important part of keeping the bottom line of systemic financial risk and it is one of the main tasks of three critical battles.Strengthening the risk control of the fund is one of the major issues facing by ADBC.This article concluded the current main risks existence and its causes of the fund through analysis the fund's concept and features;the analysis is based on a presupposition that the fund is similar to credit business of commercial banks,the author use credit risk management concepts of commercial bank and related theories and methods to reach the conclusion from the concept of the policy risk,credit risk,market risk,liquidity risk,operation risk.