Description: Turkey : Rural Finance Study, Volume 1. Main Report

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Turkey : Rural Finance Study, Volume 1. Main Report

Over the past five years in Turkey, the agricultural and rural sector has seen substantial change in transfer policies which now place greater emphasis on improved equity and investment. These have been summarized in the earlier World Bank "R...

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Bibliographic Details
Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2013
Subjects:	ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO MARKET ACCESS TO SAVINGS ADVISORY SERVICES AGRICULTURAL ACTIVITIES AGRICULTURAL CREDIT AGRICULTURAL DEVELOPMENT BANK AGRICULTURAL INCOME AGRICULTURAL SECTOR AGRICULTURE ORGANIZATION ATM CARDS BANK ASSETS BANK LENDING BANK LOANS BANKING SERVICES BANKING SYSTEM BANKRUPTCY BANKS BORROWER BORROWING BROAD ACCESS BUSINESS ASSOCIATIONS BUSINESS MANAGEMENT BUSINESS PLAN CAPACITY BUILDING CAPITAL ADEQUACY CASH FLOW COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANK COMMERCIAL BANKING COMMERCIAL BANKS COMMODITY EXCHANGES CONSUMER CREDITS CONSUMER LENDING COOPERATIVE BANKS COOPERATIVES CREDIT ANALYSES CREDIT BUREAUS CREDIT CARD CREDIT CONSTRAINTS CREDIT COOPERATIVE CREDIT COOPERATIVES CREDIT FLOWS CREDIT HISTORIES CREDIT INFORMATION CREDIT INSTITUTIONS CREDIT LINE CREDIT LINES CREDIT MARKET CREDIT MARKETS CREDIT POLICIES CREDIT PROGRAMS CREDIT PROVIDERS CREDIT REGISTRY CREDIT SCHEMES CREDIT UNIONS CREDITOR CREDITORS CREDITS CREDITWORTHINESS CROP FAILURES CROP INSURANCE DEBT DEMAND FOR SAVINGS DEPOSIT DEPOSIT INSURANCE DEPOSIT-TAKING COOPERATIVE DEPOSITORY FINANCIAL INSTITUTIONS DEPOSITS DEVELOPMENT BANKS DIRECTED CREDIT DIVERSIFICATION ECONOMIC ACTIVITIES ECONOMIC DEVELOPMENT ECONOMIES OF SCALE ELECTRONIC TRANSFERS ENTREPRENEURS EXCHANGE RATE FAMILIES FARMER FARMERS FINANCIAL AGENCY FINANCIAL ASSETS FINANCIAL DEVELOPMENT FINANCIAL EDUCATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL NEEDS FINANCIAL OUTREACH FINANCIAL PRODUCTS FINANCIAL RESOURCES FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL SERVICES INDUSTRY FINANCIAL VIABILITY FIXED COSTS FORMAL SAVINGS GOVERNMENT INTERVENTIONS GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT SECURITIES GROWTH OPPORTUNITIES HIGH INTEREST RATES HOUSEHOLD FINANCE HOUSEHOLDS HUMAN CAPITAL INFORMAL INSURANCE INFORMATION TECHNOLOGY INSTITUTIONAL CAPACITY INSTITUTIONAL CAPACITY BUILDING INSTITUTIONAL REFORMS INSURANCE SERVICES INTEREST RATE INTEREST SUBSIDIES INVESTMENT OPPORTUNITIES KEY CHALLENGES LAND REGISTRATION LEGAL REQUIREMENTS LENDER LENDERS LENDING DECISIONS LIVESTOCK INSURANCE LOAN LOAN APPLICANTS LOAN APPLICATIONS LOAN FUNDS LOAN OFFICERS LOAN PORTFOLIO LOAN PRODUCT LOAN PRODUCTS LOAN RECOVERY LOAN REPAYMENT LOANABLE FUNDS MARKET DEVELOPMENT MARKET INFORMATION MFIS MICRO FINANCE MICRO-ENTERPRISES MICRO-FINANCE MICRO-FINANCE INSTITUTIONS MICROFINANCE MICROFINANCE INSTITUTIONS MONEY LAUNDERING NEW BUSINESS NUTRITION OPERATING COSTS OPERATIONAL COSTS OUTSTANDING BALANCES OUTSTANDING DEBTS POLICY ENVIRONMENT POOR CREDIT PRIVATE CREDIT PRIVATE LENDERS PRIVATIZATION PROFIT MARGINS PROVISION OF CREDIT PUBLIC CREDIT PUBLIC INVESTMENT REAL ESTATE REGISTRATION SYSTEMS REMITTANCES REPAYMENT REPAYMENT RATES RISK MANAGEMENT RISK MITIGATION RURAL BORROWERS RURAL BUSINESS RURAL CLIENTS RURAL CREDIT RURAL CREDITS RURAL FINANCE RURAL FINANCIAL SERVICE RURAL FINANCIAL SERVICES RURAL FINANCIAL SYSTEM RURAL LOAN SAVINGS SAVINGS ACCOUNTS SAVINGS PRODUCTS SAVINGS SERVICES SECURITIES SMART CARDS SOURCE OF FUNDS SOURCES OF FINANCE SOURCES OF INCOME START UP CAPITAL START-UP START-UP GRANTS SUBSIDIZATION SUPPLY OF CREDIT TAX INCENTIVES TECHNICAL ASSISTANCE TERM CREDITS TRANSACTION COST TRANSACTION COSTS TRANSACTIONS COST TRANSACTIONS COSTS UNFAIR COMPETITION UNION UNIONS URBAN AREAS VILLAGE VILLAGES WAREHOUSE WAREHOUSE RECEIPT WAREHOUSE RECEIPTS WAREHOUSES WIRE TRANSFERS WORKING CAPITAL
Online Access:	http://documents.worldbank.org/curated/en/2006/05/16407756/turkey-rural-finance-study-vol-1-2 http://hdl.handle.net/10986/12882

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Summary:	Over the past five years in Turkey, the agricultural and rural sector has seen substantial change in transfer policies which now place greater emphasis on improved equity and investment. These have been summarized in the earlier World Bank "Review of the Impact of the Reform of Agricultural Sector Subsidization (2004), and "Policy and Investment Priorities for Agricultural and Rural Development" (2005). Currently, the structural changes in the agricultural sector and rural employment generation in response to labor shedding in the agricultural sector are key challenges to which Turkey is responding in the design of and agricultural and rural development strategy. However, the impact of government transfers and public investment policies in the rural sector will be limited unless the supply of, access to, and demand for rural financial services is significantly increased. For these reasons, the Turkey Rural Finance study (RFS) seeks to establish a policy agenda for the Government of Turkey (GOT) in order to contribute to the effort of renewed growth of the rural financial system after a period of prolonged decline. In order to inform this policy agenda, the study also has aimed at portraying the situation of rural financial markets in Turkey and determining the factors influencing the use of financial services by rural households and the constraints affecting the availability of financial services in rural areas. The findings and measures recommended by this study are also important for Turkey's on-going rural sector dialogue with the European Commission (EC), as increased access of small rural enterprises to financial services is desired for improved absorption by these enterprises of EC funding under the Instrument for Pre-Accession programs in rural areas. The findings of the RFS, based on two surveys of rural households and financial intermediaries carried out in 2004 and on other financial data compiled in 2005, reveal that rural financial markets perform relatively poorly, leading to low incidences in the use of financial services by rural households and therefore limiting their ability to take advantage of growth opportunities and/or accumulation of assets. For example while the agricultural sector accounts for roughly 10-15 percent of GDP, it receives only 5 percent of all bank loans. Based on the survey of rural households, over 70 percent of rural households were found to be credit constrained, and only 9 percent of surveyed rural households reported making investment outlays in 2004.