Agricultural Bank of China 380 billion invested in "agriculture, rural areas and farmers"

The Agricultural Bank of China recently released its 2015 China report. According to the China News, in the first half of this year, the bank made serving "agriculture, rural areas and farmers" as a strategic priority, highlighting the financial services in key areas such as new agricultural operators, water conservancy, and urbanization, and added 161.8 billion yuan in county loans.

Zhao Zhongshi, director of Agricultural Bank's "agriculture, rural areas and farmers" business, said that while the credit scale of the whole bank is the same as that of the previous year, the amount of credit allocated by the Agricultural Bank to "agriculture, rural areas and farmers" is as high as 380 billion yuan, an increase of 21 percent over the previous year.

It is understood that since 2008, the Agricultural Bank of China has separately allocated the credit scale of "agriculture, rural areas and farmers" according to the standard that the loan growth rate of "agriculture, rural areas and farmers" is three points higher than the average level of the whole bank, effectively ensuring the development needs of "agriculture, rural areas and farmers" business.

Seek innovation and pay close attention to the key areas and weak links of agriculture, rural areas and farmers

At present, China is in a critical period of transformation from traditional agriculture to modern agriculture, the circulation of rural land management rights is obviously accelerated, and new agricultural operators such as family farms are increasing rapidly. By the end of November 2014, there were 877000 family farms with an average planting size of 200mu, 3.17 million large farming households with an average planting scale of 50 mu, and 1.267 million farmers' cooperatives. How to solve the new demand of new agricultural operators for credit funds, there is an urgent need for innovation of rural financial products and services.

Zhao Zhongshi said, "in the face of new needs, Agricultural Bank of China has focused on solving three problems in recent years." First, the issue of loan access. The new main body of agricultural operation has emerged with the development of scale operation in recent years. in order to serve such a batch of new loan objects, we must first allow it to enter from the loan channel. Second, the issue of guarantee. The main body of the new type of agricultural operation has a large operation scale, a large demand for funds, and the problem of difficult guarantee is more prominent. According to the policy guidance of the people's Bank of China and the CBRC, Agricultural Bank of China has made some innovations, such as the mortgage of land management rights, exploring the use of professional large households to manage land attachments, such as greenhouses, facilities, and mortgaging large-scale agricultural machinery and tools. In the future, we will further explore ways such as mortgage of farmers' housing property rights. Third, the issue of loan quota. In the past, the amount of loans to farmers per household was generally controlled at 50, 000 or 100000, with a maximum limit of 300000 yuan. However, at present, some scale operators have contracted land of 10,000 mu, 20,000 mu and 30,000 mu, and the loan ceiling in the past can not meet the demand. The Agricultural Bank now clearly stipulates that the loan limit for family farms can reach up to 10 million yuan. "

In the face of the emerging new subjects and new needs of agriculture, rural areas and farmers, Agricultural Bank of China has also developed a series of products, such as loans for large professional households (family farms), loans for farmers' professional cooperatives, loans for Camellia oleifera, loans for the purchase of agricultural machinery, loans for water conservancy construction, and loans for rural land renovation. At present, there are 138 special products of "agriculture, rural areas and farmers" under the brand of "Jin Yinong" of Agricultural Bank of China, which can basically meet the financial needs of customers of "agriculture, rural areas and farmers".

Since July last year, Agricultural Bank of China has taken the lead in issuing national measures for the management of mortgage loans for rural land management rights in the national financial industry. Data show that by the end of June this year, Agricultural Bank of China had supported 163000 professional and family farms, with a loan balance of 31.7 billion yuan.

To establish a mechanism, the pilot project of the Ministry of Agriculture, Rural areas and Farmers will cover all county branches.

With regard to the worldwide problem of how to serve "agriculture, rural areas and farmers" by large commercial banks, Feng Yancheng, general manager of the Policy and Business Innovation Department of Agricultural Bank of China, said, "the Agricultural Bank spans both urban and rural markets, with half of its institutions in cities and half in rural areas, and so are its employees. then to do a good job of" agriculture, rural areas and farmers "business requires a strong institutional arrangement."

The Agricultural Bank of China launched the pilot reform of the Financial Division of Agriculture, Rural areas and Farmers in 2008, and has now expanded to all county branches under 20 first-level branches in 19 provinces. As of the end of March this year, the county loan balance of the 20 branches of the pilot agriculture, rural areas and farmers division was 2.35 trillion yuan, an increase of 124% over that before the pilot reform in 2008, and 27.4 percentage points higher than that of the Bank-wide loan in the same period. at the same time, the county deposit-to-loan ratio increased from 34.7% to 49.6%. Feng Yancheng said, "in these 20 pilot banks, the income-to-cost ratio has been reduced by 10%, the defect rate has dropped continuously, and the return on assets has been 1.2%. This has basically achieved the organic combination of social responsibility and business operation, as well as the sustainable development of the business of agriculture, rural areas and farmers."

It is understood that the Financial Division of Agriculture, Rural areas and Farmers of the Agricultural Bank of China implements independent management in six aspects: capital management, credit management, accounting, risk provision and write-off, capital balance and operation, and assessment and incentive constraints. the state has also implemented three support policies for the pilot reform of the financial division of Agricultural Bank of China, namely, reduction of supervision fees, preferential business tax on agriculture-related loans, and differential deposit reserve ratio.

In April this year, the State Council formally approved Agricultural Bank of China to extend the pilot reform of the Financial Division of Agriculture, Countryside and Farmers to all county branches. Feng Yancheng said, "next, in accordance with the requirements of the head office, all 2089 county branches will be brought into the management of the business department."

Expand channels, traditional finance gets on the Internet Express.

"relying on the Internet, mobile communications and big data technology, Internet finance can better solve the service problems such as wide distribution of rural customers, large number of letters, small quota and frequent use, and has unique advantages in overcoming the problems of" agriculture, rural areas and farmers "in terms of cost control, risk identification, and efficiency of resource allocation." Chang Yafeng, general manager of the Farmer Finance Department of Agricultural Bank of China, said that Agricultural Bank is also integrating "Internet +" into "agriculture, rural areas and farmers" financial services.

However, Chang Yafeng also believes that at present, it is difficult to use the Internet model to solve all the problems in rural areas, and a variety of forms are needed. At present, Agricultural Bank of China is working hard to build a "four-in-one" service channel system of artificial network, self-help bank, "Jinsui Huinongtong" engineering equipment and Internet financial service platform in rural areas. "Agricultural Bank of China provides services through the extension of the Huinongtong project, using the" card + platform + agent service "model, including production, life and other financial services, while solving the payment problem."

According to reports, Agricultural Bank of China has also developed and launched "E Agricultural Housekeeping", "Yinxuntong" and "four financing platforms", and cooperated with JD.com, Alibaba and other enterprises. Among them, "E Agricultural Housekeeping" provides e-commerce, convenient payment and other services in the field of county production and circulation, connecting producers, wholesalers, farm shops and farmers, and realizing the two-way circulation of goods between rural and urban areas.