| Agriculture plays a basic and characteristic role in the national economy. For this reason, the policy to support, protect, and develop it must be implemented relentlessly. One of the important measures for the implementation is agricultural policy banking system. The establishment and operation of Agricultural Development Bank of China (referred as ADBC) has contributed remarkably to the strengthening of operational management of policy purchase of grain, cotton, and vegetable oil. At the same time, it has also revealed that some problems did exist, such as unclear orientation and the limited scope of business operation. Taking these facts as a starting point, and based on the current economic situation, this report will present a tentative idea concerning the future orientation and development strategy of ADBC.This report is composed of five parts. The first two chapters are mainly concerned with financial theories of agricultural policy and some basic information about ADBC. It serves as a theoretical foundation for following analysis. In the following three chapters, a realistic viewpoint will taken up to give a systematic analysis both on the existing problems faced by ADBC and on the current situation. It will also point out the necessity and urgency for ADBC to give a firm support to agriculture, as well as the direction and policy for ADBC development. Agriculture policy finance is an special financial activity which takes sponsored-by-government and organized-by-government as the preconditions. Based on state credit ,finacing in agriculture other relative sectors,agricultural policy finance does not take profit as the main purpose , for the sake of supporting agricultural productor,harmonizing the national economic development and promoting the farmers income level steadly.The characteristcs of agricultural policy finance includes:1.policy-oriented loan .2.None-profit management.3.Determined bussiness scope.4.steady source of funds.5.preferential use of funds. There are deep-rooted background and theoretical foundations for the emergence and development of agricultural policy financing. First, the world economic crisis happening in the 1930s dispelled the myth advocated by conventional economists that there was an invisible hand in the economy-self-adjustment of market. The internationally-famed economist, John Maynard Keynes, emphasized the necessity of government intervention with economy. Financial policy and monetary policy are two major economic macro-coordination measures undertaken by the government. In addition, agriculture is the basis for the existence and development of national economy. To ensure the balanced and continuous development of the national economy, the government must protect and support agriculture. Agricultural policy financing combined policy and finance in an organic fashion, and has become the best choice for the government to support agriculture and to macro-coordinate the economy. Agricultural policy financing has the functions of supporting, advocating, directing, and coordinating agriculture. In helps the government to make agricultural policies at different times, and plays an important role in supporting the development of agriculture, stabilizing the market for agricultural products, and maximizing agricultural potentials. Because of the above-mentioned functions performed by the agricultural policy financing, on November 18th, 1994, the Agricultural Development Bank of China was established by the State. It could be said that the establishment of ADBC was necessitated by the underdevelopment of agriculture and rural economy of our country. It is the logical choice to support and protect agriculture and is the essential part to deepen the reform of financial structure. 6 years have passed since the establishment of ADBC. There are now 2,200 ADBC branches all over the country, with approximately 50,000 employees. For credit business, self-management has been basically realized. It has greatly helped the State's protective pu... |
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