The Research On Agricultural Loan Development Of LY Bank

With the reformation and development in more than thirty years,the rural financial industry in China has formed a multilayered and sustainable rural financial system with extensive coverage,which consists of the banking financial institutions,the non-banking financial institutions and other micro financial organizations.The rural financial system meets the basic needs of financial service in the rural areas.The reformation of rural financial industry has obtained some results.The diversification of consumers in rural financial services has driven the continuous rapid growth of agriculture-related loans.In recent years,the balance of agricultural loan has increased steadily and its growth rates are also higher than other kinds of loans.Moreover,the proportion of the agriculture-related loans in the various loans also has a steady growth.In recent years,with the vigorous implementation of the concept of inclusive finance,urban commercial banks have also gradually become important providers of rural financial market services.Under the circumstance of the rapid development of agriculture-related credit market,the total credit amount of urban commercial banks in rural areas has increased significantly.Since 2014,our country economy has entered the new normal development model.The economic slowdown has brought different levels of stress to various aspects of economy and society,and the non-performing loan ratio of commercial banks have also risen.Plus the weak nature of the rural finance itself,the risk of agricultural-related loans also increase gradually.Under the new situations,the questions of whether the agricultural-related credit of city commercial banks will continue the high growth and what the quality of agricultural-related credit is,are worthy of studying.Firstly,this paper will clarify the context and significance of this study,by analyzing the current complex economic situation and the development of agriculturalrelated loans from the urban commercial banks,under the context of the rural financial reform in China,steady rise in agricultural-related loans,and the speedy development of urban commercial banks.Secondly,this paper will focus on the micro-and macro-condition where the LY bank is situated.By analyzing the concept and classification of agricultural-related loans,this paper will study on the LY bank from three aspects: business condition,the loans,and the agricultural-related loans.Then,from the aspects of the scale,structure and quality of the agriculture-related loans in LY Bank,the thesis will have a deep analysis on the development of the rural loans and the urban agriculture-related loans,to lay the statistic foundation for future analysis.Through the profound analysis on data,the research found out the major factors that influence the development of agriculture-related loans under the present LY Bank system.In terms with the actual situation of LY Bank,this thesis tends to propose some suggestions on improving the scale and quality of agricultural-related loans.For improving the scale of the loans,LY Bank should actively endeavor to acquire the governmental support,explore the agricultural financial needs,expand customer market,innovate financial products service so as to enhance market shares.For enhancing the quality of loans,LY Bank should strengthen the internal control mechanism,innovate the training and encouraging mechanism for fresh customer managers,perfect the information system and complete the mechanism of managing the non-performing loans.