The activities of the bank cover the following: extending loans to farmers, farmer's groups or cooperatives; acting as a guarantor for farmers, farmer's groups or cooperatives for loans or farm credits from other sources; providing deposit services; issuing, buying or selling bills of exchange or other transferable instruments; buying government bonds, etc.
The bank's capital came from deposits from the public and commercial banks, shares, capital increase and loans from the Bank of Thailand, Government Savings Bank and foreign sources such as Japan's OECF and Germany's KFW and the Netherlands' FMO.
The bank's policy on credits development and service includes strengthening agricultural institutes' financial structure; promoting group responsibility in acquiring farm credits or in bargaining power; providing credits particularly to low-income earners in rural areas; helping farmers to solve production, marketing and debt problems; and helping farmers to qualify for the bank's long-term investment credits.
To support the bank's farming customers, BAAC has set up the Agricultural Cooperatives for Marketing and Thai Agribusiness Company Limited to provide farm tools and farming raw materials such as fertilizer, seed and consumer products to cooperatives members; and also to market their products.
The bank's branches have increased from 118 in 1989 to 364 last year. The number of customers who were farmers have also increased from 2,815,441 families in 1989 to 4,325,084 families in 1994. Credit extension target has increased almost threefold from 33,822 million baht in 1989 to 99,000 million baht in 1994. Operating fund has increased from 48,091 million baht in 1989 to 134,532 million baht last year.
BAAC's ultimate aim is to strengthen agrobusiness infrastructure for the Thai farming sector, so that individually or collectively, Thai farmers can fully depend on their agricultural vocation as a gainful livelihood.