Founded in April 1994, The Agricultural Development Bank of China (ADBC) is a state-owned agricultural policy bank under the direct administration of the State Council. Based in Beijing, ADBC has 30 provincial branches and about 2000 sub-branches across China. For a long time, ADBC relies on borrowings from the People’s Bank of China as its source of funds. Since 2005, ADBC has enlarged its sources of funds through money and capital market. The funds of ADBC are mainly used as the working capital of the enterprises specialized in purchasing grain, cotton, edible oil. By the end of June, 2005, the total outstanding loans issued by ADBC amounted to 729.3 billion yuan.