Analysis of the place of participation banks in agricultural finance and an example of a private bank

The aim of this study is to reveal the place and importance of participation banks in the agricultural sector. For this purpose, 2009-2020 bank loan data were analyzed according to sectors and the effect of a sample participation bank on financing activities and profitability in the agricultural sector was examined. As a result of the study, the share of participation banks in total loans and the cash and non-cash loans received in the general agricultural sector were examined over the years, and it was observed that the share of participation banks in both the credit cake and agricultural loans had an increasing trend in the examined periods. In addition, one of the striking results of the study is that the bank's total assets, funds provided and net profit level have increased since it started to serve the agricultural sector. In other words, the fact that it serves the agricultural sector has a positive effect on the bank's financial statements. In addition, as a result of the analysis, it has been revealed that the NPL ratio in the agricultural sector is below the banking sector average. This situation can be considered as an opportunity for the participation banks of the agricultural sector. The study consists of four main parts except the introduction part. In the first part of the study, basic concepts and general information about banking and participation banking are explained. In the second part of the study, the fund collection and fund allocation methods of participation banking for the sectors and the sectors in which participation banks are active are discussed. In addition to these, information about participation banks operating in our country is given. In the third part of the study, the functioning of the agricultural sector, financing processes, the problems of the agricultural sector were examined and solutions were offered and the form of agriculture financing with interest-free instruments was explained. In the fourth part of the study; Statistical data to determine the importance of participation banks in the agricultural sector are presented and interpreted as tables and graphics. In this section, the credit data of a sample participation bank in the agricultural sector and information about the funding options for the agricultural sector are explained. The situation of the examined participation bank in the agricultural sector over the years has been revealed and the bank's agricultural financing risk, agricultural credit card risk and ELUS (Electronic Product Bill) product risks are included. Comparisons of the NPL ratios in the banking sector and the agriculture sector were made. In the conclusion part, with all the analyzed data, an evaluation was made and suggestions were made for the participation banks and the sample bank to be more active in the sector and increase their share.