Agricultural Bank of Packilvania
luMonaat aluZiraya aBakhilfaniya (Packilvanian) | |
 | |
| Abbreviation | MOZIBA |
|---|---|
| Nickname | luMonaat ameZiraya (Farmer's Bank) |
| Formation | March 16, 1987 |
| Founder | luKhanon aluMonaat aluZiraya aBakhilfaniya (Packilvanian Agricultural Bank Act) |
| Type | For-profit state-owned corporation |
| Purpose | Ensure food security for Packilvania |
| Headquarters | Bingol, Packilvania |
| Services | Commercial banking, insurance and finance |
| Owner | Government of Packilvania |
Chief Executive Office (muSharif muBas) | Kashaal Adwaal |
Revenue | 67 billion kirib |
The Agricultural Bank of Packilvania (Packilvanian: luMonaat aluZiraya aBakhilfaniya, MOZIBA) is a state-owned corporation from Packilvania responsible for providing financing to farmers for the procurement of equipment, seeds, animal feed, fertiliser and other services and products required by the agricultural sector as well as modern banking services.
History
When Packilvania was ruled by the Demirite dynasty, the land was mostly owned by the nobility of Packilvania and leased to peasant farmers. Peasant farmers had to pay levies in kind or in money to their feudal overlord. In the 18th century, the government allowed commoners to own land and allowed communities to own land in trust. Wild pasture was made available for farmers to graze their live stock. However, the country had not adequately modernized its food industry such that when the country was involved in the Great War under Zerah Demir IV, the country was not able to provide sufficient food to the population, forcing rations which worst affected the Feline population.
When the Demirite dynasty was overthrown by the Packilvanian Communist Party under Gideon Muktan, they abolished all remnants of the feudal system and private ownership of land. Peasant farms were consolidated and placed under the control of state authorities. These communal farms often struggled to meet state quotas and many government officials either lied about their output or ciphened off the produce on the blackmarket to make a profit. Furthermore, farmers were disincentivised to put for effort into their farms because there was little room to make profit from it. Thus, many farmers fled to the cities to make a living. As such, food production in the country collapsed and the country experienced famine in the 1920s and 1930s.
The government subsequently created state owned corporations that aimed to consolidate and commercialise food production and hire farmers as wage workers and place experienced farmers in managerial positions. They invested in irrigation, artificial fetilizer and modern farming equipment. Food production stabilised but the country still had challenges distributing and providing adequate food. Furthermore, many state owned companies struggled with debts due to the fact that the government forced them to provide food at low prices. This also caused monocultures and many varieties of foods to go undercultivated.
When the Bedonite dynasty and the Carriers of Mercy under Sultan Amhoud I toppled the Packilvanian Communist Party, one of the key focuses of their first five year plan was to stabilise, privatise, and modernise the agricultural sector. The bank was established in 1987 by the Agricultural Bank of Packilvania Act (luKhanon aluMonaat aluZiraya aBakhilfaniya) passed by the Parliament of Packilvania and signed by Sultan of Packilvania Amhoud I. This was part of a two-pronged approach to redistribute land to private citizens and to support them with cheap financing and modern banking services.
Under the government's land reform policy, state-owned land was leased for periods ranging from 20 to 200 years to experienced farmers who had previously worked for the state or owned their own farms. The bank in turn worked with them to source artificial fertiliser from overseas or from local fertiliser manufacturers. It also provided them with low cost banking services such as account and financial management services. Loans were developed which catered to the specific needs of the farming industry. In addition, the Agricultural Bank also insured farmer's land and equipment against accidental destruction and theft, and other unforeseen conditions.
Operations and Functions
Today the Bank provides the following services to farmers:
- Loans and credit for farming-oriented needs
- Depository services
- Payment services (including Plexis credit and debit cards)
- Insurance products
- Financial planning advice
The bank also has functions in relation to the state:
- Advise the government on land reform and agricultural policies
- Advise the government on regulation of the agricultural sector
- Manage the distribution of state subsidies to farmers.
To date, the bank has lent out over 1 trillion kirib in funds to farmers and it manages over 940 billion kirib in financial assets. The bank made a profit of 2.2 billion kirib in 2022 and a total revenue of 67 billion kirib. It has managed and overseen over 430 billion kirib in government subsidies.
Controversies
The bank has been criticised for prioritising large scale farmers due to the fact that it is incentivized to seek the farmers most likely to pay off their debts and to generate the highest returns (interest income from the repayment of loans). As such, smaller farmers have complained that the bank does not provide adequate loans and favourable enough rates to make them competitive. Furthermore, others have criticised the bank for excluding investment by farmers into areas not explicitly involved in farming from their lending scheme.
Others have criticised the Council of Ministers for giving excessive credence to the policy advice of the Bank. This is because the bank again perpetuates the idea that large scale farming is the most economically viable and stable source of food at the expense of smaller farmers. As such, the Minister of the Environment and Food Security, Prince Sawadel, issued a directive in 2012 instructing the bank to diversify its pool of credit lending for more services and to a wider pool of farmers. This has led to improvements for smaller farmers especially those who farm seasonal crops or crops with small yields such as Sweet Durians.