China’s Agricultural Policy Bank Financing Reform Issues And Solutions

China’s agricultural policy financial institutions were set up by the state, based on the state credit, to accomplish the state’s agricultural goals besides serving the "three rural" fields, as the main purpose not for profit making. At this stage, China Agricultural Development Bank (hereinafter referred to as "ADBC") is China’s only agricultural policy financial institution, which plays an important role in social capital back into the countryside, makes contributions on balancing development of China’s first industrial economy and social harmony, however, there has capital flow problems of inadequate funding and structural imbalances in balance. These problems have affected the agricultural policy financial institution’s own sustainable development.This thesis is based on the existing research results, started from the domestic research and other basic problems, reviewed agricultural policy finance theories and China’s rural financial system design and operating results, made a comprehensive study on China’s agricultural policy financial institution financing, deeply analysed the current problems of China’s agricultural policy bank in financing channel--namely high cost of financing through the issuance of bonds; the central bank’s monetary regulation initiative if depending on the People’s Bank refinancing; the ADBC’s deposits ineffective because of the narrow scope of business besides lack of dynamic capital replenishment mechanism. Referring to the world agricultural financial policy and financing operations, learning from foreign experiences, this thesis gives policy recommendations on deepening the reform of agricultural policy bank financing, through the improvement of the functions, a sound mechanism, business reengineering and strengthening cooperation with government financial section, etc., in order that agricultural policy financial institution could achieve sustainable development, while we can guide more social capital back to "three rural" fields, make agricultural policy funds to support China’s agricultural and rural economic development.