The Study Of Policy Support On Agriculture-related Business Of ABC

The rural finance is a global difficult problem. In order to promote the development of rural finance, many countries give a great support on the financial agriculture-related business, which includes not only the subsidies and tax breaks of banks by government, also the considerable efforts made by the government on the improvement of the overall business environment of rural finance.As a traditional support agriculture bank, the ABC has done some useful exploration on the service of "three rural", and also got some remarkable achievements. But the ABC also has some conspicuous problems in practice, which mainly showed in the contradiction between the service of "three rural" and business operations. Therefore, it is necessary to learn and use the support policy of agricultural-related finance in foreign, to mobilize the ABC to actively services for "three rural", and make better use of its main channel and key role in the rural financial system, as well as to promote the development of rural finance, and thus promote the development of the rural economy.This paper focuses on the policy support on agriculture-related business of ABC to research and it is divided into seven chapters. Chapter Ⅰ is the introduction, mainly introduces the research background, research content, innovation and insufficient. Chapter Ⅱ summarizes the theory of financial policy support in rural areas, mainly introduces three main rural financial policy support theories of the rural credit subsidies theory, rural finance market theory and imperfect competition market theory. Chapter Ⅲ mainly describe the analysis of the necessity of financial service policy support and the government responsibility of the agriculture-related service in China and researches the necessity of implementing the policy support to rural finance from the perspective of the nature, the features and the current situation of rural finance. It points out that, due to the rural finance service is the necessary and quasi-public goods in social, and it has the features of weak, public and policy, so it is necessary for government to step in to conduct some support policy on the rural finance and agriculture-related finance institutions. Chapter Ⅳ mainly introduce the current development of China’s agriculture-related finance, we can find that the reason of the scare rural finance supply is mainly caused by the contradiction between the profit-driven of the commercial banks and the low profitability of rural finance through the analysis. Chapter V reviews the state of the agriculture-related business of the ABC, which have been oscillating between the commercial and policy and can hardly give attention to both, it needs the government’s support urgently. Chapter VI offers some countermeasure suggestions for the support policy on agriculture-related business of ABC on the aspects of fiscal policy, monetary policy, regulatory policy, risk-sharing mechanism, financial eco-environment of rural finance, and so on. Chapter VII makes a summary and comes up with the view that the government support policy can be phased out and exit after the ABC got a perfect operation mechanism on the agriculture-related business gradually and can get a sustainable development even it leaves the government support.