ABC establishes farming credit policy system

Agricultural Bank of China issued the Construction Plan on the 'Sannong' or farmers-agriculture-countryside credit policy system.

ABC seeks to further optimize its 'Sannong' and County Area credit business, and continuously improve its 'Sannong' banking services. The Plan sets forth the guiding ideology and basic principle for the development of ABC’s 'Sannong' credit policy system, prescribes its basic framework and main content, and puts forward the long-term and short-term objectives of as well as supportive and guarantee measures for 'Sannong' credit policy system. The issuance of the Plan signifies that ABC has fully accelerated its development of a relatively independent 'Sannong' credit policy system.

The Plan also sets forth that, as an integral part of ABC's credit policy system, 'Sannong' credit policy system should be developed in line with the overall risk preference of ABC.  In combination with regulatory requirements and credit business development of the Farmers Banking Department, the system should further emphasize the diversity, flexibility and pertinence of 'Sannong' credit policies.

Meanwhile, through establishing and improving industry credit policies and regional credit policies for 'Sannong', ABC should gradually build up credit access standards and management requirements consistent with ‘Sannong’ banking services, and unify business development and risk control, thus facilitating sound and rapid development of 'Sannong' credit business.

The Plan points out by the end of 2012, ABC should establish a 'Sannong' credit system directed by annual credit policies, based on agro-related credit policies and with a focus on diversified regional credit policies.