Research On Farmers’ Micro-credit Development Of Agricultural Bank Of Yantai

As a great agricultural country, the issues of “Agriculture, Rural Area andFarmers” have been a hot issue in recent years. Since2004, these issues have been thetheme of the No.1Central Documents of China. In the past years, focus of thefinancial support has been on cities and industry while rural areas are weak infinancial development. In view of the strategic policy of the construction of new ruralareas, urbanization and the integrated development of rural and urban areas, the ruralareas are in greater need of financial support. in order to promote rural developmentand increase the earnings of farmers, agricultural banks in Yantai have successfullylaunched a micro-credit product for farmers in2008. As one of the distinctiveproducts in serving agriculture, rural areas and farmers, this product is farmer-friendlyand is aimed to provide loans for farmers who have low income. With the launchingof this product, farmers’ needs of credit funds are effectively met. Moreover, thecredit asset structure of the agricultural bank is also adjusted, which enrichs theirdiversified development. Moreover, the micro-credit business for farmers is graduallydeveloping into a stable growth pole of profits. After years of development, by the endof2012,870thousand farmers-friendly bank cards have been issued by ABC inYantai. The micro-credit balance for farmers has reached865million RMB.40thousand peasant households are benefited and the popularizing rate among farmershas reached20percent, which effectively supports farmers’ production and ruraleconomic development.However, with the development of the farmers’ micro-credit business, problemssuch as stagnation, decline as well as constant bad conditions also arise. In order topromote the sustainable and healthy development of the business above, this paperstarts from the theory concerning farmers’ micro-credit and combines it with thecurrent situation of rural financial development and the business operated in Yantai.By taking the normative and empirical analysis methods, this paper aims to find outthe possible elements which restrict the development of farmers’ micro-creditbusiness. In view of the advanced practical experience at home and abroad, this paperputs forward some new patterns and effective measures for the scientific developmentof farmers’ micro-credit so as to stimulate the transformation of the farmers’micro-credit business in Yantai. Through this transformation, agricultural banks inYantai are able to take effective methods to controll risks when enlarging the scale forthis business. More peasant households can benefit from the farmers-friendly fund. Asa result, the trio effect can be made: more income of farmers, the development of theagricultural banks as well as the social progress. Meanwhile, with the research on theenlargement of the scale of famers’ micro-credit, this paper also sets good examplesfor the development of farmers’ micro-credit in other financial institutions ofShandong province.