An Impact Measurement on the Loan Operation of Agricultural Marketing Goods by the Lenders: A Case Study of Bangladesh

Abstract

Bangladesh is predominantly agricultural country from the beginning of its invention. About 85% people are living in the rural society to sustain their life in the hard situation. To the rural economy finance is very potential to provide in the development of agricultural activities. Various banks are providing agricultural loan under the control of Bangladesh Bank in the development of agriculture sector. Among them BKB, RAKUB and four government bank played key role in the agriculture development besides private commercial banks and foreign commercial banks are also active in loan providing. The aim of this paper is to identify the relation of agricultural marketing goods loan to other loans. This study is confined to the loans on different agricultural sectors by five banks of Bangladesh named NCBs, BKB, RAKUB, BRDB and BSBL and the contribution to agricultural marketing goods loan by the agriculture sector by the lenders for the nine years period from 2005-2006 to 2011-2012.  This paper shows that all the variables are not positively correlated to each other. Except the loan on marketing of agricultural goods, the correlation among the other loans is positive. On the basis of  statistics, we may conclude that the coefficient of the loan on Purchase of irrigation equipment, loan on Livestock and loan Poverty Alleviation are so statistically significant at 5 percent level of significance. Other coefficients of the independent variables considered in the study are statistically significant at 5 percent level of significance.

Keywords: Agricultural marketing goods loan, Lenders (NCBs, BKB, RAKUB, BRDB and BSBL), Bangladesh