The applicability of institutional management concept in agricultural credit cooperatives

Agricultural Credit Cooperatives, as well as being a cooperative institution, have the characteristics of money, credit and finance. Due to this structural pattern, they incorporate crucial financial risks. In Turkish Trade Act, merely cooperatives and incorporated companies have the obligation to form a steering committee and hold a plenary session. In Agricultural Credit Cooperatives and Associations, shareholders, who are the genuine owners of the properties, have not been able to organize sufficiently and deal with the management process efficiently. As a result, administrators-employees are in a stronger position than shareholders.The objective of this research isboth theoretically and by a field study,to define the need for institutional management concept in general terms, by determining in which fields the operational process of the system is appropriate and in which ones is not for the institutional management concept in Agricultural Credit Cooperatives and Associations. It has further been aimed to maintain the reorganization of the Cooperatives and Agricultural Credit Cooperatives Act within the framework of institutional management concept and reach a more effective and productive level of cooperative system,by showing that institutional management concept can be applicable in Agricultural Credit Cooperatives and Associations.Research, survey and questionnaire techniques have been used in the study. In determining the conceptual framework of the study, local and foreign broadcasts as well as views from authorities concerning this issue have been made use of. On the other hand, by forming an inductive methodological style, the determined conceptual framework has been brought into conformity with the questionnaire describing the practical realities. Agricultural Credit Cooperatives and Associations as research population and the employees of Agricultural Credit Cooperatives and Associations as target population of the study was chosen in the thesis.As a consequence of the information compiled from the literature and the conducted field study, it has been ensued that institutional management concept has not been put into practice sufficiently, that in order to maintain its economic presenceowing to the current economic system and the activities of rival institutions, there is a need for the mounting of principles such as fairness, transparency, accountability and responsibility which form the foundations of the institutional management concept, that a fresh reorganization is needed with the strong support of the participants.Keywords1.Institutional Management2.Cooperative3.Agricultural Credit Cooperatives4.Financial Risk5.Inspection