Re-lending for supporting agriculture is an important policy measure for the People's Bank of China to promote the improvement of rural financial services and support rural credit cooperatives to expand agricultural credit in the process of rural financial reform. Since 1996, when the National Rural Credit Cooperatives and the Agricultural Bank of China broke away from the administrative affiliation, the Agricultural Bank no longer provided support funds to the rural credit cooperatives. At the same time, due to the influence of local financial risks in the late 1990s, the financial strength of rural credit cooperatives was weakened, and deposits continued to wander. In addition, at that time, state-owned commercial banks concentrated on merging branches below the county level, and the contradiction between the demand for county financial services and agricultural credit and the lack of funds of rural credit cooperatives was prominent. In order to support the expansion of agricultural credit, guide the increase of farmers' loans, and promote the improvement of rural financial services, with the approval of the State Council, the People's Bank of China began to handle agriculture-related refinancing business on 1999.