Research On The Development Of Farmer’s Loan Strategy In XX County Branch Of Agricultural Bank Of China

For a long time, difficulty in agriculture finance has severely restricted the development of the rural economy and the efficiency of agricultural production, at the same time, it hinders the growth of farmers’ income. To increase farmers’ income, to solve the "three rural" issue, and to build a new socialist countryside, China’s rural finance urgently needs to provide a new supply of body and innovation in organization and institution. In recent years, both international and domestic rural micro-credit achieved great success in solving the "farmers financing difficulties", and laid a rich theoretical and practical foundation for serving "three rural". In2008, CPC Central Committee identified the market positioning of Agricultural Bank of China, that is facing the "three rural", and serving urban and rural. An important work to serve the "three rural" is to comprehensively promote micro-credit in rural areas. In recent years, rural micro-finance has played a positive role in improving the financing needs of farmers, and increasing farmers’income, but there have been many problems in the process of implementation and risk gradually emerged. How to put farmer’s small loans into "commercialization" operation under controlled risk, Agricultural Bank of China face a "second transition" in farmer’s loan.This thesis tries to study farmer’s loan business model at home and overseas, making specific analysis of current development of rural credit operations in XX County and then gives suggestions on the development strategy of loans to farmers in XX county branch of the Agricultural Bank of China. This thesis attempts to expand the study from the following aspects:(1) This part systematically introduces domestic and foreign farmer’s loan theoretical foundation and development process. First of all, it makes a clear definition of farmer’s micro-credit, and defines the difference between rural poverty alleviation loans and micro-credit to clear subjects for further in-depth analysis. Then, it describes the theoretical study of micro-credit in domestic and overseas, and highlights on the different theories about the micro-credit development in developing countries. While in the theoretical analysis of domestic scholars, this thesis cites insufficient supply of rural finance theory and suppress in demand perspective and find the theoretical basis for the development of micro-finance to farmers in the country. At last, it introduces the development process and development characteristics of micro-credit in recent years. Through the practice of financial institution in domestic and foreign, it finds out the practical experience in micro-credit. After analysis and comparison of theory and practice in domestic and overseas, this thesis puts forward the principles of the development of micro-credit.(2) The second part focuses on the development of the micro-credit in XX county branch of Agricultural Bank of China, as well as the current situation and existing problems. For better discourse the development of micro-credit in county branch of the Agricultural Bank of China, this paper will take XX county branch of Agricultural Bank of China as a template to research and analyze. In2009, XX County Branch was identified as the first batch of pilot branch implementing farmer’s loan business in Sichuan Province. Its county characteristics and the business model of economic development have a strong typicality, so it has practical significance county branch of the Agricultural Bank to explore micro-finance development approach. This paper through describing the progression of micro-credit in XX Branch, as well as risk status, makes detailed analysis of the supply and demand of micro-credit, and also points out the advantages and disadvantages in the development of micro-credit by using SWOT analysis, and fingers out that it is necessary to implement second transformation in farmer’s loan.(3) This part proposes development proposals of micro-credit in XX county branch of the Agricultural Bank of China. Through analyzing micro-credit-development-pattern in domestic and overseas and micro-credit mode in XX County, the paper puts forward that due to differences in the economic base, geographic area and other aspects, financial needs of farmers showed different and multilevel features. The development of micro-credit must be based on the characteristics and level of economic development of the county, and adopt the principle of local conditions, as well as relying on the pillar industries and specialized industries in the region and implementing the development chain of farmer’s loan so as to promote intensive development of farmer’s loan.