This thesis is a research on the three chief policy banks in China: Country's Bank
for development, Bank of Import Export, Bank for Agricultural Development.
The aims of the establishment of policy banks are: First, to separate policy financial
business from the four chief specialized banks so as to relieve their burden and turn
them into state-run trade banks. They will therefore be more adaptable to the construction of
socialist market economy and better prepared for the challenges from foreign capital
banks after China's entry into WTO; Second, to realize the relative independence in
policy fiscal investment and financing circulation so as to guarantee the capital
resources for key state construction projects and to actualize the aims of state industrial
policy. In some sense, the establishment and perfection of policy banks is a key factor in
the tarn for mation of specialized banks to trade banks and is also the foundation of the
pioneering work in fiscal investment and financing circulation system and of the reform
in financial system in China.
Policy banks are the product of the reform of economic system and fiscal investment
and financing circulation system. Although they meet the needs of the transition from
the new to the old economic system, it still has large historical limitation. During this
period, state-run policy banks form their management system and behavior according to
China's national conditions. But with the maturity of market economy and the
development of the reform in economic and financial system, risk problems within
state-run policy banks will be more obvious. Therefore, it is necessary to analyze and
study the management system and behavior of China's Policy banks in their investing
and money circulating activities. This will help to establish a centralized policy bank
system with financial support and to perfect management system of policy banks and
avoid following the same old road to ruin of the four chief state-run specialized banks.
Research methods: 1) Combined theoretic and practical analyses. This thesis tries
to analyze the differences between self-run and agent systems in the administration of
policy banks with exchange cost theory. It uses entrustment-agency theory and reverse
choosing and moral risk theory to analyze the disadvantages of first-degree corporation
system, "third-degree administration and first-degree management" system and its
consequent "internal monopoly". It also use a cargo amount of historical facts,
documents, and statistic materials to illustrate and discuss problems concerned. 2)
Combined analysis and generalization. Analysis of the birth, devQlopment, and
operation of policy banks is indispensable to this appreciative research paper. It
generalizes and concludes on this basis t11e deveIoping regularity of policy banks, the
process and methods of investing and money circulating activities.
Structure: ChaPter One "preface"; Chapter TWo" Tl1e modes and ways of the
transmutation of fiscal investment and financing circulation system;" Chapter Tl1ere
"the transmutation of financial system and tl1e reforln of the main body il1 fiscal
investment and financing circulation' the theoretic background of policy banks;"
Chapter Four" conditiol1s for the effective operation of policy banks;" Chapter Five "the
development of policy banks il1 China;" Chapter Six "conclusion: the basic thought of
the development of policy banks in cl1il1a."
Pioneering points of this thesis are: First, it makes a deep al1alysis of the
background and significance of the establishment of policy banks in Cl1ina flom the
vieWPoint of the transmutation of fiscal investlnent and financing cil.culation system.
Second, it makes a systematic analysis of the conditions for the etTective operation of
policy banks, the careens development of China'S policy banks, and tl1eirProblems and
historical limitation. Third, it proposes the basic idea of the development of china's
policy banks: l) to establish a c