Bank for Agriculture and Agricultural Co-operatives in Thailand and Beyond

The Bank for Agriculture and Agricultural Co-operatives in Thailand is a vital institution that supports rural development. It was established in 1974.

The bank's main goal is to provide financial services to farmers and agricultural co-operatives, helping them to improve their livelihoods and increase their productivity.

The bank's operations have expanded beyond Thailand, with a presence in several other countries in Southeast Asia.

BAAC's impressive loan outreach to Thailand's rural poor is a notable achievement. BAAC has successfully carried out its mandate without government subsidies.

The bank's deposit base grew remarkably quickly by providing standard and tailor-made savings instruments to its clients. This was made possible by exploiting the comparative advantage of its branch network and existing links with its client population.

BAAC demonstrated to other Thai institutions that lending in rural areas can be a profitable activity, encouraging an increase in lending by other banks. The bank's focus on the "bottom" line and corporate culture that recognizes and rewards cost effectiveness and efficiency are key factors in its success.

BAAC was established on November 1, 1966, as a government-owned bank to provide affordable credit to agricultural producers.

The Bank for Cooperatives, established in 1947, was a precursor to BAAC, and its functions were taken over by BAAC.

BAAC's initial focus was on providing credit to agricultural producers through agricultural cooperatives and farmers' associations.

This approach was a significant step towards supporting the agricultural sector and promoting economic growth.

In 1993, BAAC was authorized to lend to farmers for agriculturally-related activities, such as cottage industries.

BAAC's performance in 2014 was impressive, with total assets reaching 1,431,040 million baht.

The bank's net profit for the fiscal year 2014 was a significant 10,368 million baht.

BAAC had a large network of 1,327 branches and 1,074 service bureaus.

The bank's ATM network was extensive, with 2,001 ATMs available to customers.

BAAC employed 18,372 people, a substantial workforce that helped the bank operate efficiently.

Thailand has a government-owned rural finance institution called the Bank for Agriculture and Agricultural Cooperatives (BAAC) that's been successful without government subsidies. This institution has a remarkable loan outreach to Thailand's rural poor and impressive savings mobilisation performance.

BAAC has a large branch network that allows it to reach a wide client population. It's been able to develop its deposit base quickly by offering both standard and tailor-made savings instruments to its clients.

The bank's focus on the "bottom" line and corporate culture that recognises and rewards cost effectiveness and efficiency are key to its success. This approach has demonstrated to other Thai institutions that lending in rural areas can be a profitable activity, encouraging an increase in lending by other banks.

BAAC's success can be attributed to its ability to exploit its comparative advantage and existing relationships with its client population. This has allowed the bank to develop a strong deposit base and increase lending in rural areas.

The following are some key statistics about BAAC's performance: