Case Study of Farmers' Commercial Bank
This case study sketches the successful progress of the Farmers' Commercial Bank (FCB) of Sudan. In 1998 a merger of two banks led to the formation of Farmers' Commercial Bank (FCB), with the broad mission to achieve:
- Financing the agricultural, industrial, trade and export sectors;
- Providing on farm and off farm inputs.
Over the years, the bank has:
- Advanced direct credits;
- Rent contracted a number of rural agricultural projects;
- Encouraged usage of farming inputs.
As per the author, FCB has emerged as a net rural credit supplier and it allocates loans for on farm and off farm activities for both short and long terms. The ratio analysis shows that the performance of the bank is good.
The author states that financing of agriculture is risky in Sudan because of adverse climatic conditions. Though FCB faces risks in credit, capital and operations, it has an experienced, qualified and trained management to look after its operations.
The study makes the following recommendations:
- People are more important than their activities;
- Educational and training programs should be directed to the consumers and to the bank staff;
- Restriction and financial training may lead to success.
The case study concludes that:
- Participation can lead to effective mobilization of rural finances;
- Application of relatively new banking methods and Islamic norms can lead to long term sustainability and better working environment for both the clients and the staff.
