THE EFFECTS OF CREDIT FINANCING IN AGRICULTURE ON THE DOMESTIC PRODUCT IN AGRICULTURE IN THE REPUBLIC OF SERBIA

Abstract

In recent years, the banking sector has increasingly turned to
the agricultural sector. There is a noticeable increase in the total claims
of the banking sector from registered farms in the period 2012-2020,
while the part of the domestic product generated by the agricultural
sector also recorded growth, but not in the same percentage as bank
loans to agriculture. The aim of this paper is to examine the
interdependence of the increase in total claims of banks on registered
agricultural producers with the increase in the domestic product
generated by the agricultural sector. The method of statistical correlation
was used in this paper. The impact and changes of investment loans in
agriculture, loans for working capital, but also the change in bank claims
from agricultural producers based on interest and fees have been
analyzed. The conclusion is that there is a connection between loans and
the domestic product of the agricultural sector, but that there are other
factors that have an impact, too. Although in recent years the banking
sector has been more open to the agricultural sector and although loans
have become more affordable, it is necessary to create conditions for
even greater availability of loans to agricultural producers, which would
create positive effects on agriculture.