A Research Report On The Financial Poverty Alleviation Of The Banking Industry In Baoding

Although with an increasing economic development since the reform and opening up, China, as a great agriculture country owing 1.3 billion peasants, still face one burden of the economy- poverty pollution. Therefore, the CPC central committee releases the “No 1 Central Document” every year to resolve the rural areas?peasants and agriculture problems. In order to help the peasants to get rid of the poverty all-around as planned, the government has formulated the policy to achieve the overall poverty alleviation by the end of 2020. The poverty-stricken area of our whole country has been divided into several parts and the eight poor counties in the western mountainous area of Baoding belongs to the Yanshan-Taihang Mountain destitute area. In order to win the poverty alleviation battle, Xi Jinping, as the General Sectary of the Party, brought forward the idea of taking targeted measures to help people lift themselves out of poverty, which meant to change the simple?rough way into a more precise and targeted way. The finance industry, as the blood of the industry, supports the whole poverty alleviation greatly, especially the intermediary agency and commercial bank, plays an irreplaceable way. The financial institution has got involved in every step of the poverty alleviation, for example, to extend the loan projects and increase the branches or other organizations to help the poverty alleviation project.The thesis paper make a research on the various financial institutions' poverty alleviation process of the eight poor counties in the western mountainous area of Baoding. Through the research on the financial situations in Baoding and measures the financial institutions they took, this paper summaries the problems they encounter and gives the suggestions to improve the situation. Actually, with an increasing GDP since 2011 and a reduced poor population, Baoding's economy has developed just as fast as the country's economy, achieving an effective result in poverty alleviation project recently. With the cooperation of People's Bank of China and various financial institution, Baoding municipal government makes more efforts in the poverty alleviation work and deeply carries out the national policies and legislations and spreads the idea of the poverty alleviation to all the people. The research shows that there are four kind of models existing in the Baoding's financial poverty alleviation work: “ finance+ leading enterprise” “finance + government credit mechanism” “ finance+ special industry+ farmer” “ finance+ bonding company+ cooperation+ farmer”, and those all reach better achievements, greatly contributing to the local poverty alleviation work. Meanwhile, we also should to realize the problems, for example: the risk of loaning to help the farmers without risk-sharing mechanism; small amount and small limit of the medium and long term loans; difficult financing guarantee; lack of scale effect of the agricultural industrialization development and so on. All the existing problems bring great challenge to Baoding's poverty alleviation work, which demands us to seek a new model to carry the work to the end.With eight poor counties, Baoding has a big pressure in the poverty alleviation work, so the government should take targeted measures to help people lift themselves out of poverty. The paper suggest that the government should pay more attention to the support of the establishing the file and card, make a research on the poverty alleviation situations of various financial institution and find out the measure to improve Baoding's overall poverty current situations. The measures include allocating the resources reasonably, optimizing the guaranty style, establishing the favorable credit environment in a further way, promoting the agriculture insurance actively and gaining more high quality resources by connecting with Beijing and Tianjin. Finally, the government should makes the financial institution fully exert an important role in the poverty alleviation work and increase their initiative by giving them some subsidies.