Busting Agro-Lending Myths and Back to Banking Basics: A Case Study of AccessBank’s Agricultural Lending
- 9.3k Downloads
One third of AccessBank’s micro-business loans are extended to farmers. The portfolio of this segment has grown quickly and performed well. Why is Access- Bank Azerbaijan successful in agricultural lending, a sector often disliked by other commercial banks? And why is the bank viewing farmers as a strategic core clientele? This case study aims to give some answers and explore some of the myths around agricultural lending.
KeywordsCash Flow Rural Household Loan Portfolio Business Loan Forecast Cash Flow
- Adams, D.W., Graham, D.H., von Pischke, J.D. (eds.) (1984) Undermining Rural Development With Cheap Credit. Westview Press.Google Scholar
- Berg, G., Kirschenmann, K. (2010) The Impact of the US Financial Crisis on Credit Availability for Small Firms in Central Asia.Google Scholar
- Christen, R.P., Pearce, D. (2005) Managing Risks and Designing Products for Agricultural Microfinance: Features of an Emerging Model. CGAP Occasional Paper No. 11.Google Scholar
- Dichter, T., Harper, M. (eds.) (2007) What’s Wrong with Microfinance. Practical Action Publishing.Google Scholar
- Doran, A., McFadyen, N., Vogel, R.C. (2009) The Missing Middle in Agricultural Finance. Oxfam Research Report.Google Scholar
- Dudwick, N., Fock, K., Sedik, D. (2005) A Stocktaking of Land Reform and Farm Restructuring in Bulgaria, Moldova, Azerbaijan and Kazakhstan. World Bank (Environmentally and Socially Sustainable Development Europe and Central Asia Region).Google Scholar
- Fitch Ratings (2010) AccessBank, Rating Update, 9 April 2010.Google Scholar
- International Crisis Group (2010) Azerbaijan: Vulnerable Stability. Europe Report, N°207.Google Scholar
- Haggblade, S., Hazell, P. Reardon, T. (eds.) (2007) Transforming the Rural Nonfarm Economy. IFPRI. John Hopkins University Press.Google Scholar
- Harper, M. (2007) Microfinance and Farmers: Do they fit? In: Dichter/Harper, pp. 83–94.Google Scholar
- Hübner, G. (2010) As If Nothing Happened? How Azerbaijan’s Economy Manages to Sail Through Stormy Weather. Caucasus Analytical Digest, No. 18, pp. 4–14.Google Scholar
- Hübner, G., Jainzik, M. (2009) Splendid Isolation? Azerbaijan’s Economy Between Crisis Resistance and Debased Performance. Caucasus Analytical Digest, No. 6, pp. 12–19.Google Scholar
- Lamberte, M.B., Fitchett, D. (2006) Rural Finance in Azerbaijan. In: Lamberte et al., pp.105–123.Google Scholar
- Lamberte, M.B., Vogel, R.C., Moyes, R.T., Fernando, N.A. (2006) Beyond Microfinance – Building Inclusive Rural Financial Markets in Central Asia. Asian Development Bank.Google Scholar
- Maurer, K. (2013) Where is the risk? Is agricultural banking really more difficult than other sectors? In this volume.Google Scholar
- Meyer, R.L. (2011) Subsidies as an Instrument in Agricultural Finance: A Review, Joint Discussion Paper. World Bank, http://siteresources.worldbank.org/INTARD/Resources/Subsidies_as_Intrument_AgFin.pdf.
- News.az (2010) First Stage of Land Reform Finalized in Azerbaijan. 3 December 2010, http://www.news.az/articles/society/27715.
- World Bank (2005) Realizing Azerbaijan’s Comparative Advantages in Agriculture. Final Report, June 2005.Google Scholar
Open Access This chapter is distributed under the terms of the Creative Commons Attribution Noncommercial License, which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.