Study On Credit Asset Quality For The Agricultural Development Bank Of China In Jilin Branch

Agriculture, which takes a larger proportion of national economic system, is thebasic industry in China. And the “Triple Agricultural Problem” has always been ofgreat concern to major problems. There has been in disadvantage in agriculturalproduction and operation, as its major dependence on natural conditions, and itsrelatively long production cycle. Agricultural investment represents relatively lowreturns and high risks, because of which the general commercial financialinstitutions is reluctant to put money into the agricultural production, andnon-commercial bank plays an important role in filling the funding gap ofagricultural investment. ADBC(Agricultural Development Bank of China) is theonly agricultural policy bank in China, which plays the most important role insupporting and guiding on the development of China’s agricultural and ruraleconomic development, as well as cotton and oil and other staple agriculturalproducts circulation of new socialist countryside construction, agriculture-relatedfields. Along with the deepening of China’s market economic reform, business fieldsof ADBC have developed and transformed into a commercial credit business. ADBChas to pay more attention to Effective management of credit risk, improvement ofcredit assets quality.Jilin City is located in the northeast region of China, which is the mainproduction area of grains. Agriculture is the basic industry of the city. However,after the reform and opening up, gross economic development of Jilin City is laggingbehind the coastal areas, which leads to agricultural and rural credit funds shortage in the city, and constraint of agricultural development and growth.By the very nature of agriculture and regional economic environment, supportsfrom commercial financial institutions for agriculture and the rural economy in JilinCity are relatively of low level, especially in rural infrastructure, agriculturalproduction base and development, ecological environment, agricultural soil andwater conservation and so on, and therefore financial support from ADBC Jilin is ofvital importance. In June1996, ADBC Jilin was established, whose initial scope ofbusiness was simply grain-related. After decades of development, its business hasgradually expanded with more commercial intermediate business and full mostagricultural business. With ADBC Jilin significantly enhanced the role of agricultureas well as expand its business scale. More problems of credit risk has graduallyexposed. Therefore, the major problems to ADBC Jilin includes: improving thequality of credit assets, and sustainable development of policy and commercial creditbusiness.This paper reviews the establishment, growth, business and support onagricultural development in Jilin City of ADBC Jilin. Through the scale ofnon-performing loans and ratio, the paper analyzes the current situation, asset qualityof credit assets problems, and concluded with reasonable design and specificimprovement measures for quality management of credit assets of ADBC Jilin.