How banks can make full and good use of support policies for agriculture
Coinciding with the spring plowing season, demand for financial support for agriculture is growing day by day across all localities. The China Banking Regulatory Commission recently issued the "Notice on Doing a Good Job in Rural Financial Services for 2015," requiring banking financial institutions to strengthen their responsibility for agricultural support services and push financial resources to continue tilting toward the "three rural" issues. Compared with the capital market's support for the "three rural" issues, banking financial institutions, as the traditional main force in agricultural support, have more advantages in this regard and should seize this opportunity to make full and good use of regulatory policies.
From the current perspective, banking financial institutions should, in accordance with the China Banking Regulatory Commission's policy of granting greater tolerance for agriculture-related non-performing loans, conduct thorough loan investigation and research, screen qualified agriculture-related credit customers, strive to cultivate credit sources, and ensure that the total amount and increment of agriculture-related loans show a substantive upward trend; they should ensure the expansion of the "three rural" credit scope, increase the total amount of agriculture-related credit disbursed, and consolidate the credit statistical base; they should, in accordance with regulatory requirements such as strengthening differentiated regulation of rural finance, appropriately raising the weight of "three rural" business assessment scores, and implementing flexible loan-to-deposit ratios for county-level legal-person financial institutions with a relatively high proportion of agriculture-related loans, flexibly adjust credit scale and reasonably arrange credit disbursement according to the seasonal demand characteristics of "three rural" industries, effectively alleviating the difficulty of obtaining agriculture-related loans.
In addition, banking financial institutions should mobilize employees' subjective initiative in expanding "three rural" credit. Accountability for agriculture-related non-performing loans should be based on actual circumstances; loan losses caused by objective factors such as natural disasters and other force majeure may be exempt from accountability, eliminating the worries of the vast number of credit personnel in agriculture-related bank branches and achieving the purpose of expanding agriculture-related loan marketing.
Banking financial institutions should also boldly innovate credit service methods and products. In pilot areas for rural "three-rights mortgage," they should boldly participate in pilot programs for mortgage loans on rural land contractual management rights and farmers' housing property rights, accumulating experience and providing ideas for the comprehensive promotion of "three-rights mortgage" loans.