OREANDA-NEWS. September 12, 2011. Agricultural Bank of China (ABC) issued the Construction Plan on the 'Sannong'(farmers-agriculture-countryside) Credit Policy System (the 'Plan') 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, reported the press-centre of ABC.

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. In terms of the development of 'Sannong' regional credit policies, ABC should gradually issue regional credit policies respectively for main food crops production areas, tobacco leaf production areas, forest and fruit production areas, animal husbandry areas, and the Western Taiwan Straits Economic Zone in Fujian Province. In terms of the development of ‘Sannong’ industry credit policies, ABC should gradually formulate and issue policies for various agro-related sectors including dairy processing, fertilizer production, pesticides, meat processing, sugar processing, etc. Additionally, ABC should adjust and issue diversified county-level credit policies such as real estate, education, hospitals, tour, small scale hydropower stations at the county level.

In order to smoothly carry out the development of 'Sannong' credit policy system, the Plan proposes the following requirements: firstly, an inter-level and inter-department cooperative work mechanism should be established; close cooperation and clear definition of functions should be realized between the Head Office and various branches, and among County Area related departments of the Head Office; secondly, a dedicated credit policy research experts team with high theoretical knowledge, rich experience and fruitful research results should be formed through multi-level trainings and business practice, so as to store talents for the development of 'Sannong' credit policy system.