AGRICULTURAL CREDIT IN THE NATIONAL BANKING SYSTEM: ANALYSIS, TRENDS, PERSPECTIVES

Abstract

Repayable financing is one of the oldest practices for financing agriculture. Agricultural credit, in the past, but also in the present, is an important concern of credit institutions such as banks, non-bank lending organizations, savings and loan associations, etc. Agricultural credit remains one of the main instruments for financing the agricultural business, as demonstrated by the practice of the last decades in the Republic of Moldova. The analysis of the bank agricultural credit evolution is imposed as a way to highlight both the trends in its dynamics and to elucidate the existing deficiencies in the agricultural producer – bank relations. The results of these investigations also serve to support the arguments for the bank lending modernization in agricultural business, determined by the general peculiarities of agricultural production and the current economic situation, in order to maintain competitiveness in agricultural markets and promote agricultural development.

Keywords

• repayable funding
• agricultural credit
• loan portfolio
• credit policy
• collateral