| Agriculture Bank of China (ABC) has always been playing an important role in facilitating the development of rural economy since it was found. Before China put the Reform and Open policy into practice, ABC used to put loans on government desire and the private investment was restrained, so ABC provides few loans to private investment. Since 1978, private investment entered the high-speed developing period, and in the same time, ABC made change from government bank to commercial bank, both of them made immense improvement. So, it makes sense to analysis financial support of ABC to development of private investment. Especially in Beijing suburb, private investment contributes to economy development more than state-owned investment. And in Beijing suburb, ABC has form its particular characteristic in credit operation to private investment, and compared to other banks, ABC has many advantages to do this, and so do Beijing Rural Commercial Bank (BRCB), therefore it is important for ABC to cooperate with BRCB on finance support to private investment.According to the eleventh five-year planning, government will emphasize on developing economy of rural district. ABC Beijing Branch (ABCBJ) has always been providing loans to individual and enterprises, and it is good at finance support for private investment, so ABCBJ should base itself upon the rural finance market rather than abandon it, and should make good use of these advantages to keep providing finance support for private investment in Beijing suburb, especially for agriculture, agriculture industrialization, and for some developing enterprises in industrialization aggregation as well. ABCBJ should cooperate with BRCB, in order to provide more efficient finance support. Loan to private investment will not only improve the assets quality and reduce the loan risk, but also will accelerate the development of private investment. It will lead to the "win-win" of ABC and private investment. |
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