Foundation of Our Bank
Upon adoption of the occidental models in trade and finance by the Ottoman Empire in the first half of the 19th century, foreign banks started operating within the territory of the country. Capital accumulation that is adequate for the establishment of a banking system of a national nature had not formed in the country in that period and presence of national banks as a tool for creating funds could not be spoken of.
The section of the society that suffered from this situation the most was far
mers, who made up a large majority of the population; as a large group of farmers having a hard time making ends meet in the agricultural sector, which was completely left to its fate, was in need of loans from private individuals all the time due to lack of a corporate structure, to which they could apply. Creditors were various tradesmen and craftsmen such as tradesmen selling agricultural equipment, wholesalers, exporters, commissioners, middlemen, and convenience store owners, as well as money Lenders who acquired this as a profession. This type of high interest rate loans from private individuals were called Usurer or Usuary Loans. “State Cases” ( Memleket Sandıkları) were named after wooden cases (“sandık” is the Turkish word for “case”) in which money collected was saved in wooden cases and lent to farmers to be returned during harvest.
Affairs of the cooperatives were managed by 4 cooperative custodians consisting of 2 Muslims and 2 Christians selected by the participant villagers. Journals, in which daily procedures were written down; ledgers, in which all accounts were registered; and ready cash were kept in these wooden cases. Later on, these cases were replaced by primitive cases made from iron by the foremen in the area for security reasons.
Upon entry into effect of the “State Case Regulations” in 1867, state cases went into action all over the Ottoman Empire (Rusçuk, Eski Cuma (cities in Bulgaria) and Nicosia state cases were the first examples), and rendered services successfully for many years.
2/3 of the profit from the cases that remained after deducing expenditures from revenues obtained from credit facility procedures was used in the construction and restoration of publicly available basic requirements in the respective areas the cases were located in such as schools, roads and bridges. From this aspect, state cases also contributed to the town planning of the country. However, the degeneration observed in the functioning of the state cases in the following years reduced the efficiency thereof. Thinking that it could reduce the negativities by subordinating the cooperatives to the central administration, the government established “Cases for Public Benefits” (Menafi Sandıkları) in 1883 in line with the same purpose. Upon introduction of Cases for Public Benefits; administration was rearranged, recoding and accounting procedures started being carried out in line with modern and scientific standards, and were subjected to direct inspection by the central government. Although this new structuring brought in relatively businesslike functioning that is open to scientific inspection, it could not suppress the need for a completely new and modern organization.
The idea of and tendency to organize the current organization in the form of a bank developed when the facts that the Cases for Public Benefits did not satisfy the needs, a revision was essentially required from the administrative aspect, and their resources were limited were added; this issue was thought about in all seriousness by Abdul Hamid II, as well. In the minutes submitted by the Grand Vizier Kamil Pasha to the Cabinet and Abdul Hamid II, the necessity for the abolition of Cases for Public Benefits as they could not function anymore and establishment of Ziraat Bank instead was written down. Upon entry into force of the minutes in question with the confirmation and approval of Abdul Hamid II; Ziraat Bank, a modern financial institution that would succeed Cases for Public Benefits, was officially established on August 15, 1888 and Cases for Public Benefits that were active in that period were transformed into bank branches and went into action. Public benefit shares, which constituted the financial resource for Cases for Public Benefits until that day, were transferred to the bank and the next funds were also allocated to the capital of the bank. A new era of organized agricultural credits in our history was entered into after such step was taken.
Ziraat Bank In The War Period
In the 1900s, when the economy gradually worsened, the Ottoman Empire lost its territories first in Tripoli and then in the Balkans. The big world-embracing war that broke out in Europe was bringing a 600-year-old empire near the end.
It was in those hard times that a new law was made about Ziraat Bank on March 23, 1916. Article 1 of the law read as: “Ziraat Bank has been founded to provide convenience for farmers and serve the development of agriculture.”. Ziraat Bank could
issue bonds to this end; get into partnerships with agricultural enterprises; obtain seeds, animals, agricultural implements etc. and give such to farmers for cash or against a loan; and distribute the land it had bought to farmers when necessary.
A war of life and death that will last for about 3 years began under the leadership of Mustafa Kemal, who went to Anatolia upon invasion of the capital city of the empire by the allies. Battalions of Kuva-i Milliye (national forces) that started forming in Anatolia within the framework of national struggle were in need of financial support. It was necessary to assist the treasury, local governments and military units which were deprived of sufficient resources. It was in that period that cash benefits were provided by the branches and cases of Ziraat Bank and notes were taken against each cash benefit provided. The bank organization did not abstain from providing financial assistance in earnest to the holy struggle within the bounds of possibility. Ziraat Bank rendered significant services to the Treasury during the War of Independence, and gold belonging to the bank was secretly brought from Istanbul to Ankara upon instruction by Mustafa Kemal. Again, Ziraat Bank supported the War of Independence by sending a good part of its personnel to the front.
Ziraat Bank endeavored to contribute not only to those commanding such holy struggle but also to all Turkish villagers taking part in the independence movement to the extent possible with such assistance provided by its branches.
While Regulations on the Obligations of the Agricultural Society made upon a directive by Mustafa Kemal Pasha specified the principles of assistance to be provided by the bank to the families of farmer soldiers fighting at the front, it assigned to Ziraat Bank the task of distributing the agricultural tools and equipment and seeds at the customs.
Increasing Number of Branches and Ziraat Bank's Role In the Post-War Period
Number of branches and cases of Ziraat Bank, which was responsible for assisting those working in the agricultural sector, was increased from 110 to 300 in 1923. The bank was provided with a capital worth about TL 2 million in that period and the bank started providing loans to territories -especially those that were saved from the enemy- extensively.
In a country which was burnt up, destroyed and in poverty in the 1920s; industrial enterprises, the number of which were already low before the
war, had become unfunctional, individual initiative-based bench work had disappeared, and transportation had almost come to a stopping point. Number of branches of Ziraat bank was increased in a very short period of time and the credit facilities thereof were developed so that these difficulties could be overcome.
The bank was transformed into an Incorporated Company with the budget law of Ziraat Bank enacted in TGNA in March 1924.
Ziraat Bank made great contributions in terms of overcoming the negative effects caused by the economic crisis that affected the whole world in 1929 and the subsequent World War II with the least damages possible. In those hard times when even bread was rationed, the state was implementing compulsory savings policies and encouraging everyone to do the same. And Ziraat Bank provided people with various opportunities for deposits in order to motivate them to make saving. Bringing up a prudent generation was aimed at with the home safes introduced again in this period. Various agricultural courses aiming at increasing productivity by teaching farmers new agricultural techniques were also opened with the contributions of Ziraat Bank in the same years.
Ziraat Bank, the status of which was changed to state enterprise with a law enacted in 1937, was provided with the opportunity to provide more unconstrained services when partial autonomy in its management was granted to it. Again based on the same law; Istanbul Assurance Case, which was founded by Mithat Pasha in 1868 for the transfer of small savings into small investments, was incorporated into the bank.
Resources and utilities of Ziraat Bank were always taken into consideration while planning new moves in the field of agriculture to develop villages and villagers after 1905, when the negative effects of the war started fading away.
The bank has always managed to overcome the difficulties it has encountered thanks to its rooted structure, management that is based on firm principles, and experienced and educated staff. Number of branches providing services all over the country reached 630 in 1963.
Leads in the Agricultural Sector
Making rapid progress in every field, the Bank led the introduction of a new era in Turkish agriculture when a Turkish-American company, of which it was a partner, produced the first domestic tractor. Replacement of ploughs and wooden plows by tractors and combine harvesters, use of chemical manure instead of natural manure, provision of healthy and productive seeds, and assistance provided for the struggle against pests were new steps taken and moves made on this. Assistance was given to invest ments made on field improvement and irrigation. Loans provided in the field of fruit growing ensured development of fruit growing and diversification of exports. Resources needed by cooperatives established as a result of organization of farmers were supplied with the resources of the bank. Pasture improvement, development of meat and dairy farming by aiding breeding animal import and establishment of industries relating thereto were ensured. Loans that were promotive in many fields from beekeeping to silkworm breeding were provided with the means of Ziraat Bank. Financial support was given to the manufacturing of agricultural machinery and equipment, which were crying needs for the villagers. In this way, various modern agricultural machinery and equipment previously observed in state farms only started being used in private agricultural areas with the cheap credit facilities of the bank and became popular rapidly. By this means; production increased, fields were rendered ready for another plantation and farmers were provided with the opportunity for a second harvest.
Devamı Gizle
The Bank of All Times
Having proliferated its services in time in order to be the bank of everybody and all walks of life, Ziraat Bank continues developing its activities to add value to the country. Ziraat Bank, which was founded as a modest cooperation fund in 1863, now ranks among the most valuable assets in the country.
Devamı Gizle