Five relationships should be properly handled in financial services for agriculture, rural areas and farmers

The financial service of "agriculture, rural areas and farmers" is a worldwide problem. Large commercial banks span urban and rural areas, serving "agriculture, rural areas and farmers", in addition to facing general financial problems such as customer weakness and risk multiplicity, it is also faced with special challenges such as urban-rural dual structure and integrated operation, particularity of financial needs and management standardization of "agriculture, rural areas and farmers" customers, decentralization of "agriculture, rural areas and farmers" business and centralization of management. From the practice of the Agricultural Bank of China, large commercial banks should focus on dealing with the "five relationships" in serving "agriculture, rural areas and farmers".

Commercial Management and fulfilling Social responsibility

Strengthening the financial services of "agriculture, rural areas and farmers" is an important content for financial institutions to fulfill their social responsibilities. At the same time, with the continuous acceleration of the reform and development of "agriculture, rural areas and farmers", the commercial service of financial institutions to "agriculture, rural areas and farmers" is facing more opportunities. Financial institutions should seize this opportunity to balance the relationship between commercial operation of "agriculture, rural areas and farmers" and social responsibility, so as to achieve a bumper harvest of both economic and social benefits.

Since the share reform and listing, the Agricultural Bank of China has adhered to the direction of whether to change its shares to serve "agriculture, rural areas and farmers". While actively increasing the investment in the business of "agriculture, rural areas and farmers", the Agricultural Bank of China has continuously improved the sustainable development ability of the business of "agriculture, rural areas and farmers". By the end of June 2014, the balance of agriculture-related loans of the Agricultural Bank of China was 2.3 trillion yuan, an increase of 1.4 trillion yuan compared with the end of 2008 (after the share reform was spun off); the loan balance of farmers reached 555.3 billion yuan, providing financial support to more than 10 million farmers; the loan balance of county small and micro enterprises reached more than 430 billion yuan, supporting more than 600000 customers; and the loan balance in 14 poverty-stricken areas reached 429.4 billion yuan, which strongly supported the local economic development. Basic financial services cover all counties and 70% of administrative villages across the country, making outstanding contributions to improving the payment and settlement system in rural areas. At the same time, the contribution of Agricultural Bank of China's "agriculture, rural areas and farmers" business to the whole bank continues to increase, the cost and risk can be controlled, and the ability of commercial sustainable development is constantly improved.

The Agricultural Bank will always adhere to the organic unity of "facing agriculture, rural areas and farmers" and "commercial operation", constantly increase investment in "agriculture, rural areas and farmers", and further enhance the business value creation ability of "agriculture, rural areas and farmers". The first is to implement the state's policies and measures to support agriculture, rural areas and farmers and the real economy. We will focus on supporting grain production, collection and storage, and the construction of agricultural infrastructure, and increase support for key areas and weak links in the development of agriculture, rural areas and farmers. We will actively support backbone enterprises and projects that have landed in the county, strive to promote the construction of a monopoly system for small and micro enterprises, and further support the transformation and upgrading of the county economy and the accelerated development of small and micro enterprises. The second is to actively practice inclusive financial responsibility. Further strengthen the construction of the "Jinsui Huinongtong" service points to enhance the convenience of farmers' access to financial services; actively strengthen cooperation with local finance to further expand the scope of loans for poverty alleviation and rich farmers; and for 14 concentrated areas with special difficulties, special poverty alleviation programs have been introduced to further improve the level of services. At the same time, we should take inclusive financial business as the starting point, expand the customer base and lay the foundation for future development. Third, strive to improve the business value creation ability of "agriculture, rural areas and farmers". Actively seize the county's middle and high-end customers, increase the proportion of high-quality customers, comply with the trend of interest rate marketization, implement differential pricing by regions, businesses and customers, constantly strengthen pricing management, and enhance overall profitability. to create conditions for better performance of social responsibility.

Overall planning, coordination and differential management

There is a big difference between "agriculture, rural areas and farmers" customers and urban customers, and the operation mode of urban finance can not meet the financial needs of "agriculture, rural areas and farmers" customers. In order to serve agriculture, rural areas and farmers, large commercial banks must make differential institutional arrangements for the business of agriculture, rural areas and farmers under the unified management framework of the whole bank.

In order to effectively realize the differential management of the business of agriculture, rural areas and farmers, the Agricultural Bank of China has implemented the reform of the financial department system of agriculture, rural areas and farmers. In the management system, we should build the organizational structure of "three-level supervision and first-level operation", determine clear management and business boundaries, and constantly enhance the service capacity and operational vitality of county branches. In terms of operating mechanism, six separate policies are implemented for the financial department of agriculture, rural areas and farmers, such as capital management, credit management, accounting, risk provision and write-off, capital balance and operation, assessment incentive and restraint, etc. In terms of credit policy, we should construct a "trinity" credit policy system "guided by annual credit policy guidelines, based on agricultural industry policies and focusing on differentiated regional credit policies". Build a differentiated "agriculture, rural areas and farmers" business credit management system. Practice has proved that the reform of the financial department of agriculture, rural areas and farmers provides a strong guarantee for the Agricultural Bank to serve "agriculture, rural areas and farmers".

On the basis of strengthening the overall planning and coordination of the whole bank, the Agricultural Bank will further strengthen the differential management of the business of agriculture, rural areas and farmers. First, we will further deepen and expand the reform of the financial sector system for agriculture, rural areas and farmers. Within the scope of the whole bank, we will promote the reform of the financial sector system for agriculture, rural areas and farmers, and further expand the scope of reform. Optimize and adjust the responsibilities of departments, improve the relevant operating mechanism, and further improve the level of professional management. The second is to strengthen the top-level design of differentiation policy. Systematically sort out the problems existing in the credit system, business process, assessment and incentive policies for agriculture, rural areas and farmers, and strive to optimize and adjust them to enhance their applicability. The third is to guide the differential development of county branches. Guide county branches in the eastern region to actively seize new opportunities in the process of economic transformation and upgrading and urban-rural integration; encourage county branches in Xinjiang, Yunnan, and Northeast China to increase support for modern agriculture and characteristic agriculture; urge county branches of major grain-producing provinces in the central region to make new contributions to implementing the national food security strategy and supporting grain production.