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 th
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
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 whic
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
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.