Policy Banks Non-performing Loans Prevent And The Disposal Research Based On Agricultural Development Bank Of Xinjiang Branch

Bank is an financial institution which has the function of credit intermediary byproviding business such as savings, loans, deposits and remittances. Bank is also one ofthe most important financial institutions. The main business scope includes absorbingpublic deposits, loans and notes discount, etc.As you can tell from the definition of bank, the main business of banks is dealingwith currency, which determines banking to be a risk-intensive-industry. Credit assets isthe core business assets of banking, the survival, developments, and the stability of socialfinancial order are directly determined by the quality of credit assets, consequently,banking of every country in the world share the same issue of preventing and disposingappropriately on non-performing loans.The agricultural development bank of China (hereinafter referred to as "ADBC") isthe one and only agricultural policy bank in China. The first priority obligation of ADBCis to execute the national macroeconomic regulation and control policy and to foster"three agriculture" the people’s livelihood industry and the second obligation is to achievefinancial self-sufficiency and creating profits by effective management. With thedeepening reform of circulation system of foodstuff and cotton, the political function ofADBC is weakening, the function of operating and making profits strengthening, theoperating scope broadening, the business of ADBC has developed from the solelyacquisition, reserve service of foodstuff, cottons, and oil to present “one body two wings”pattern, which is consisted by “one body”: the acquisition, sales and reserve service offoodstuff, cottons and oil, and “two wings”: supporting the industrialized operation andprocessing of agriculture, and supporting the construction of rural infrastructure.This paper brought up the countermeasures and suggestions to the non-performingloans of ADBC Xinjiang branch on the basis of the related theories of finance, economicsand non-performing loans management in China and abroad, and the cause, the presentsituation, characteristics and disposing methods and some other issues of non-performing loans. And by comparing the advanced theories and experiences of prevention andsolution of both in China and abroad and combining the practical management ofnon-performing loans at ADBC Xinjiang branch. Hopefully this paper can bring certaintheoretical guidance and reference to ADBC Xinjiang branch’s preventions and disposalson non-performance loans, and reducing the credit risk, improving the quality of creditassets.