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Agricultural Development Bank of China

Agricultural Development Bank of China

About bank

 In order to improve the rural financial service system of China and better implement the policies of the national industrial development and regional development, the State Council has released the Circular on Establishment of Agricultural Development Bank of China with an aim to promote the further development of agriculture and rural economic development on April 19, 1994, which approved the charter of operations and program on its establishment. 

    ADBC accepted 259.2 billion yuan of agricultural policy loans transferred from Agricultural Bank of China and Industrial and Commercial Bank of China. In April 1995, ADBC has completed the establishment of its provincial branches. From August 1996 to March 1997, ADBC has set up branches and sub-branches below the provincial level in accordance with Decision on Reform of Rural Financial System of the State Council. Thus a nationwide network of branches has been established. In March 1998, the State Council decided to transfer the businesses related to poverty alleviation, comprehensive agricultural development and sideline business of grain and cotton enterprises undertaken by ADBC to the state-owned commercial banks. ADBC was required to focus its attention on management of the funds for purchasing grain, cotton and edible oil. 

    Since 2004, the business scope of ADBC has been expanded gradually. To begin with, ADBC has expanded its loans customer base range from traditional state-owned grain, cotton and edible oil enterprises to multi-ownership ones in accordance with State Council’s decision on the marketing reform of grain. Secondly, in September 2004, China Banking Regulatory Commission approved ADBC to conduct loan business for agricultural flagship enterprises and agricultural processing enterprises . Thirdly, in July 2006, China Banking Regulatory Commission approved the expansion of ADBC’ s loan business for agricultural flagship enterprises and the opening of loan business for agricultural science and technology. Fourthly, in January 2007, China Banking Regulatory Commission had approved ADBC’ s engagement in loans for construction of rural infrastructure, agricultural integrated development and means of production. To date, ADBC has formed its business development pattern that can be compared as ‘one body with two wings’, which takes grain, cotton and edible oil credit as the main body with agriculture industrialization and medium to long-term agricultural and rural credit as two wings.