Our Story
The Bank for Agriculture and Agricultural Cooperatives (BAAC) is a state-owned bank established under the Bank for Agriculture and Agricultural Cooperatives Act, B.E. 2509 (1966). BAAC was founded with a clear mission to provide financial support to farmers, farmer associations, and agricultural cooperatives engaged in agriculture and related sectors.
Mr. Chamnian Saranaga, BAAC’s first President, played a pivotal role in laying a strong operational foundation for the Bank. He pioneered key development initiatives that have supported equitable and sustainable growth over time, while also establishing BAAC’s core ethical and governance principles to ensure transparent, efficient operations and prevent conflicts of interest, particularly in serving farmer clients.
At its core, BAAC moves forward with three core missions
- To provide financial support to individual farmers, farmer associations, and agricultural cooperatives engaged in both agricultural and related non-agricultural activities.
- To enhance farmers’ and their families’ quality of life by providing access to essential knowledge, skills, and appropriate technologies.
- To collaborate with public and private sector partners in supporting agricultural and related business activities, with the aim of increasing income and fostering long-term improvements in living standards.
Key Milestones and Developments
First Decade
1966 - 1976
Reducing Informal Lending
In its first decade, BAAC focused on extending short-term and medium-term loans to farmers in a timely manner and expanding geographic coverage to reduce farmers' reliance on high-interest informal lending.
Financial innovations, particularly The Joint Liability Group mechanism was introduced to serve as alternative collateral, enabling farmers without land or assets to access loans from BAAC.
'70s
Second Decade
1977 - 1986
Expanding Financial Products
To streamline financial services, BAAC introduced cash credit lines for farmer. The Bank also collaborated with government and private-sector partners to provide quality farm inputs, agricultural infrastructure, and marketing linkages for farmers and communities.
Central markets were established in key provinces, and the paddy pledging scheme was launched to allow farmers to hold produce and sell at more favorable prices.
'80s
Third Decade
1987 - 1996
Strengthening Inclusion and Institutional Capacity
Financial inclusion was a key priority during this period. BAAC expanded financial services to small-scale farmers and low-income groups who previously lacked access to formal financial services.
The Bank also developed special lending criteria for vulnerable groups. Recognizing farmers’ limited bargaining power, BAAC, together with the Cooperative Promotion Department, supported the establishment of Agricultural Marketing Cooperatives (AMCs) to strengthen collective purchasing and improve market access.
To enhance service quality, BAAC fostered a service-minded culture among its employees.
'90s
Fourth Decade
1997 - 2006
Embracing the Sufficiency Economy and Modernization
In response to increasing financial competition, BAAC revised its operational strategies, leading to amendments to the BAAC Act that expanded its mandate to support non-farm businesses and agriculture-related enterprises.
The Sufficiency Economy Philosophy was embraced by the Bank, its employees, and customers, strengthening communities and improving service quality. Under this approach, BAAC introduced the “Truth of Life” concept, promoted household accounting, and encouraged the formation of community groups.
During this period, Islamic Banking Funds were also established at selected branches to provide Shariah-compliant financial services.
'00s
Fifth Decade
2007 - 2016
Enhancing Livelihoods and Expanding Outreach
As part of its commitment to rural development, BAAC integrated Sufficiency Economy practices into its operations, focusing on improving the living standards of small-scale farmers.
The Bank expanded access to financial services to reach broader beneficiaries, including individuals, village funds, communities, and agricultural cooperatives. Communities were encouraged to build self-reliance based on Sufficiency Economy principles.
BAAC also launched the “Do Your Best with Your Customer” campaign to enhance customer satisfaction, strengthened its Code of Conduct, and reinforced organizational culture to support sustainable community prosperity.
'10s
Sixth Decade
2017 - Present
Becoming an Agricultural and Rural Financial Hub
BAAC has strengthened its role as a rural financial hub by adopting a customer-centric approach, supporting cooperatives and entrepreneurs to enhance agricultural competitiveness and value-added production.
The Bank has empowered farmers and future generations to become smart farmers, It has also emphasized Go Green policies and Green Credit and enhanced service efficiency through digital channels and FinTech innovation.
Organizational management and workforce capabilities have been strengthened to drive BAAC’s mission from “Better Life, Better Community, Better Pride' to 'Better Quality of Life, Stronger Communities, and Pride in Agricultural Occupations.”
Present
First Decade
1966 - 1976
Reducing Informal Lending
In its first decade, BAAC focused on extending short-term and medium-term loans to farmers in a timely manner and expanding geographic coverage to reduce farmers' reliance on high-interest informal lending.
Financial innovations, particularly The Joint Liability Group mechanism was introduced to serve as alternative collateral, enabling farmers without land or assets to access loans from BAAC.
Second Decade
1977 - 1986
Expanding Financial Products
To streamline financial services, BAAC introduced cash credit lines for farmer. The Bank also collaborated with government and private-sector partners to provide quality farm inputs, agricultural infrastructure, and marketing linkages for farmers and communities.
Central markets were established in key provinces, and the paddy pledging scheme was launched to allow farmers to hold produce and sell at more favorable prices.
Third Decade
1987 - 1996
Strengthening Inclusion and Institutional Capacity
Financial inclusion was a key priority during this period. BAAC expanded financial services to small-scale farmers and low-income groups who previously lacked access to formal financial services.
The Bank also developed special lending criteria for vulnerable groups. Recognizing farmers’ limited bargaining power, BAAC, together with the Cooperative Promotion Department, supported the establishment of Agricultural Marketing Cooperatives (AMCs) to strengthen collective purchasing and improve market access.
To enhance service quality, BAAC fostered a service-minded culture among its employees.
Fourth Decade
1997 - 2006
Embracing the Sufficiency Economy and Modernization
In response to increasing financial competition, BAAC revised its operational strategies, leading to amendments to the BAAC Act that expanded its mandate to support non-farm businesses and agriculture-related enterprises.
The Sufficiency Economy Philosophy was embraced by the Bank, its employees, and customers, strengthening communities and improving service quality. Under this approach, BAAC introduced the “Truth of Life” concept, promoted household accounting, and encouraged the formation of community groups.
During this period, Islamic Banking Funds were also established at selected branches to provide Shariah-compliant financial services.
Fifth Decade
2007 - 2016
Enhancing Livelihoods and Expanding Outreach
As part of its commitment to rural development, BAAC integrated Sufficiency Economy practices into its operations, focusing on improving the living standards of small-scale farmers.
The Bank expanded access to financial services to reach broader beneficiaries, including individuals, village funds, communities, and agricultural cooperatives. Communities were encouraged to build self-reliance based on Sufficiency Economy principles.
BAAC also launched the “Do Your Best with Your Customer” campaign to enhance customer satisfaction, strengthened its Code of Conduct, and reinforced organizational culture to support sustainable community prosperity.
Sixth Decade
2017 - Present
Becoming an Agricultural and Rural Financial Hub
BAAC has strengthened its role as a rural financial hub by adopting a customer-centric approach, supporting cooperatives and entrepreneurs to enhance agricultural competitiveness and value-added production.
The Bank has empowered farmers and future generations to become smart farmers, It has also emphasized Go Green policies and Green Credit and enhanced service efficiency through digital channels and FinTech innovation.
Organizational management and workforce capabilities have been strengthened to drive BAAC’s mission from “Better Life, Better Community, Better Pride' to 'Better Quality of Life, Stronger Communities, and Pride in Agricultural Occupations.”