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Topics of Discussion. About BAAC Historical Background Structure and Service Network Products and Services Operating Funds BAAC’s operations as of 31 March 2010 Financing microenterprises. Vision.

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topics of discussion

Topics of Discussion

About BAAC

Historical Background

Structure and Service Network

Products and Services

Operating Funds

BAAC’s operations as of 31 March 2010

Financing microenterprises

  • “To be a secured rural development bank with modern managerial technology focusing on the uplift of small-scale farmer’s quality of life””


1. To render integrated credit services to enhance farmers’ opportunity for effectively improved productivity;

2. To streamline social development regarding agriculture-based learning for the improved quality of life of farmers so that they will be valuable human resource assets and worthy members of society;

3. To administer funds in such a manner that the cost is kept at the appropriate level reflecting the bank’s key mission with emphasis on liquidity and stability;

4. To develop new areas of services to effectively and productively meet farmers’ needs on the strength of high-caliber staff with sound judgment.

historical background

Historical Background

Establish in 1966

As a state enterprise under the jurisdiction of MOF to replace the Bank for Cooperatives

In response to the financial needs of farmers who during that period depended largely on local money lenders


BAAC’s Development





  • Reducing the roles of non-formal financial sector
  • Introducing innovative financial mechanism by adopting of joint liability group as a collateral for small scale farmers
    • Facilitating credit services by introducing cash credit-line
    • Offering credit in kind for providing farm-input
    • Launching of credit production and marketing linkage
  • Introducing crop pledging scheme
  • Launching non-farm credits, quality of life creditssupplement income generating credit
  • Adoption of Philosophyof sufficiency economy
  • Enhancing rural community strength
    • Scaling-upcredit provision to small-scale farmers
    • Launchingfarm related credit
  • Establishing Agricultural Marketing Cooperative(AMC)

BAAC Development

2006 – Present

  • To promote the improved quality of life of small scale farmers.
  • To extend credit services to persons, groups of persons, entrepreneurs, village or community funds, organizations aiming to promote the career of farmers and communities, and all types of cooperatives.
  • To extend credits to promote the efficiency production of client farmers.

Board of Directors

Audit Committee

Risk Management Committee


Senior Executive Vice President (Mr.Promote Nontakote)

Mr.Luck Wajananawat

  • Management Department
  • Offrice of Public Relation and Organization Communication

Audit Department

Customer and Product Development Group

Senior Executive Vice President

(Mr. Ennoo Suesuwan)

Branch Adminisitration Group

Senior Executive Vice President

(Mr. Pramote Nontakote)

Organization Strategy Group

Senior Executive Vice President

(Mr. Somchai Aumphan)

Accounting, Treasuty and Information

System Group

Senior Executive Vice President

(Mrs. Poonsook Musiklad)

  • Executive Vice President
  • (Mr.Ennoo Suesuwan)
  • Personal Loan Department
  • Institutional Loan Departmen
  • Office of Rural bank project
  • Executive Vice President
  • (Mr.Boonchuey Chaidamrongchai)
  • Government Secured Loan Department
  • Executive Vice President
  • (Mr.Pornchai Limpapas)
  • Strategic Product Markting Department
  • Debt Management Line
  • Executive Vice President
  • (Mr.Isorn Ekpisankit)
  • Customer and Rural development Department
  • Office of customer and Product Development
  • Executive Vice President
  • (Mr.Vinai Kruetreepradit)
  • Deposit Services Department
  • Office of Electronic Banking
  • Executive Vice President
  • (Mr.Boonthai Kaewkhuntee)
  • Office of BAAC Northern Region
  • Branch Administration (Upper Northern Region)
  • Branch Adminstration (Lower Northern Region)
  • Executive Vice President
  • (Mr.Pornchai Limpapas)
  • Office of BAAC Northeatern Region
  • Branch Administration (Upper Northeastern Region)
  • Branch Administration (Lower Northeastern Region)
  • Executive Vice President
  • (Mr.Isorn Ekpisankit)
  • Office of BAAC central and Eastern Region
  • Branch Administration (Central Region)
  • Branch Administration (Eastern Region)
  • Executive Vice President
  • (Mr.Boonchuey Chaidamrongchai)
  • Office of BAAC Southern and Western Region
  • Branch Administration (Western Region)
  • Branch Administration (Upper Southern Region)
  • Branch Administration (Lower Southern Region)
  • Executive Vice President
  • (Mr.Adul Kanchanwat)
  • Policy and Strategy Department
  • Human Resources Department
  • Office of Organization and System Development
  • Office of Research BAAC
  • Executive Vice President
  • (Mr.Prayong Tenbee)
  • General Administration Department
  • Office of Property Management and Building
  • Legal Affair Department
  • Executive Vice President
  • (Mr.Kamolpant Asaves)
  • Accounting Department
  • Treasury Department
  • Bank and International Business Department
  • Risk Mangement Department
  • Executive Vice President
  • (Mr.Vinai Kruetreepradit)
  • Information Technology Research Department
  • Office of Information Technology Program
service network

75Provincial branches

Service Network

1,044 branches and



2 Agricultural

Central Markets

1,043 Farmers’ Institutions


Individual Clients

4.61 mil.

products and services
Products and Services
  • Credit services
  • Wide rage of agricultural loans and non-farm loans
  • Loans for quality of life
  • - education
  • - medical care
  • - others
  • Banking Services
  • Wide range of Savings Thaweechoke
  • Thaweesin
  • Money transfer
  • Account payment
  • Currency Exchange

Number of staff 1966-2010



Starting 1966



Number of clients 1966-2010

Unit : Household



Starting 1966



BAAC Operating Fund 1966-2010

Unit : Million of Thai Baht



Starting 1966


operating fund
Operating Fund

As of March 31, 2010

As of Oct. 30, 2010


764,945 Mil. Baht

799,056 Mil.Baht


Deposits from general public- 2010

Unit : Million of Thai Baht



Starting 1975



Disbursement 1966-2010

Unit : Million of Thai Baht



Starting 1966



Loan Outstanding 1967- 2010

Unit: Million of Thai Baht



Starting 1967


financial status
Financial Status

Unit : Mil. Baht

baac plans significant projects
BAAC Plans &Significant Projects

1.Risk Management for Farmer Clients

2.Market Development for Farmer Clients

3.Knowledge Development and Strengthening Farmer Clients and Communities

1 risk management for farmer clients
1.Risk Management for Farmer Clients

As of Oct 31,2010

3,194insured farmers in 7provinces

1.1 Weather Index Insurance

Planting areas 60,688 rai*

Maize in Year 2010

Collaboration with WB+

General Insurance Assoc.

Insured fund 72.143 Mil. Baht

Premium 6.069 Mil. Baht

Indemnity 4.326 Mil. Baht

1,158 insured farmers in 16districts of Khon-Kaenprovince

Planting areas 8,040 rai

First crop paddy in Year 2010

Collaboration with Sompho

Japan Insurance Co.Ltd

Insured fund 16.080 Mil. Baht

Premium 0.746 Mil. Baht

Streamline for setting up Agricultural Alleviation Fund

Indemnity 0.119 Mil. Baht

* 1 ha = 6.25 rai

1 risk management for farmer clients1
1. Risk Management for Farmer Clients

Nov 9, 2010

1.2 Assistance for flooded farmers

in 53 Provinces,517,711 Clients

Assistance Measures

Hand-out subsistence bags for 49,630clients, amounting 9.92

Mil Baht

Donate 1 Mil Baht under the Government-to-People Help Project

Debt Suspension for farmers/interest free 3% per annum, principal 47,090 Mil Baht

9 deceased clients were loan written off, amounting 625,027 Baht

1 risk management for farmer clients2
1. Risk Management for Farmer Clients

Oct 31,2010

1.3 Thaweesuk Fund

Number of participating clients : 785,701

Amount of savings 2,135 Mil. Baht

Be able to use 30% of savings as loan collateral

Compensation fee for medical treatment in case of accident not over 800 Baht

Funeral fee in case of dying of illness not over 10,000 Baht

New born fee for 2 babies with 500 Baht each

Protection amount not over 100,000 Baht in case of dying of accident

5 Steps of welfare system given to Thaweesuk members

3 knowledge development and strengthening farmer clients and communities
3. Knowledge Development and Strengthening Farmer Clients and Communities

Provide opportunities for low income groups accessible to formal source of fund

3.3Community Bank

driven by

Village Financial Advisor

To finance organizations in community i.e village funds, rural financial institutions or savings groups etc.

Target: Credit provision to 300,000 clients, 6,000 Mil. Baht

Performance as of Oct 31, 2010

1,790 clients, amounting 36 Mil. Baht

plan government secured loan projects
Plan/Government-Secured Loan Projects
  • Informal Debt Solving Scheme

2. Households Financial Advisor Project

3. Rehabilitation and Debt Suspension for poor and small farmers Project

4. Agricultural Products Pledging Scheme crop year 2008/2009

5. Farm Income Guarantee Scheme

1 informal debt solving scheme
1. Informal Debt Solving Scheme

As of Sep 30,2010

Registered farmers :637,098

Loan outstanding67,708.59Mil. Baht

No. of farmers using BAAC loans :354,715

Credit extended 26,148.92Mil. Baht

Train farmers in 289Learning Centers

Train Living Plan Course to 34,748farmers

Train Income Generation Course 8,063farmers

2 village financial advisor project
2.Village Financial Advisor Project

Target : 26,000 clients covering 26,000 villages

Check household financial health


Provide consultancy service

Render financial service

**To train advisory knowledge in finance to 650 volunteer advisors in 13 provinces by November 2010

3 rehabilitation and debt suspension for poor and small farmer project
3. Rehabilitation and Debt Suspension for Poor and Small Farmer Project

Project completion as of March 31,2010

Participating farmers : 206,709

No. of trained farmers

Phase 1: Living Plan Course206,709 farmers

Phase 2 : Income-Generation Course192,175farmers

Phase 3 : Selection Course 6,244 farmers

4 agricultural products pledging project production crop year 2008 2009
4.Agricultural Products Pledging Project, production crop year 2008/2009

As of Oct 31,2010

CommitmentBalance 66,806Mil. Baht

** Fy 2009/2010 The Project is changed to the Farm Income Guarantee scheme

5 the farm income guarantee scheme
5. The Farm Income Guarantee Scheme

As of Oct 31, 2010

5.1The Farm Income Guarantee Scheme, crop year 2009/2010

Loan allocated under SP 2 amounting 40,000 mil. Baht, amount reimbursed 39,513 mil. Baht

Loan allocated under fiscal budget 2011 (second crop paddy) amounting 5,270.98 mil. Baht

financing microenterprises under baac s operations
Financing Microenterprisesunder BAAC’s operations
  • Defined by loan size(≤ THB 50,000)
  • 2 Types of microenterprises – Entrepreneurs and Community enterprises
the importance of microenterprises
The Importance of Microenterprises
  • Creating jobs
  • Generating incomes
  • Creating value add to primary products
  • Income distribution
  • Promoting and sharing of knowledge
characteristics of baac s microenterprises
Characteristics of BAAC’s Microenterprises
  • Very small size of loans
  • Very small business volume
  • Lack of managerial skills
  • Low technology
  • Lack of access to conventional financial institutions
  • Lack of collateral
financing microenterprises
Financing Microenterprises
  • Qualifications
    • Legal entity
    • Thai national
    • At least 1 year of operation and profitable
    • Venue situated in Thailand
    • Skilled or accomplished training course(s)
    • Permanent resident in the area of certain branch at least 6 months
financing microenterprises1
Financing microenterprises
  • Types of loans
    • Short term loan as working capital
    • Long term loan for investment
  • Interest rate
    • MLR + 0-5%
  • Collateral
    • Joint liability group
    • Guarantors
    • Mortgaged properties
factors determining interest rates
Factors Determining Interest Rates
  • Characters 15 points
  • Performance 15 points
  • Credit records 20 points
  • Collateral 25 points
  • Project feasibility 25 points
financing community enterprises cms
Financing Community Enterprises(CMs)
  • Credit plus
  • Strengthening moderate CMs
  • Assisting in establishing new CMs in cooperation with related government agencies
  • Applying the King philosophy of Sufficiency Economy as a guideline of operations
  • Marketing linkage