Specialized Bank Performance and the Challenge of Term Finance By IJISRT

Abstract

This paper aimed to assess the role of specialized state-owned development banks in Sudan in promoting, developing and acquisition of agricultural technology. The study stressed its role exemplified by the Agricultural bank of Sudan(ABS) as a development bank and how to tackle commercial issues. The main focus of the study is to study the means and modes adopted by the specialized bank and its role in developing the agricultural sector. Primary and secondary data were collected from the Agricultural Bank of Sudan by structured questionnaire. Targeted random sampling were followed to cover about 59 bank employees (main branch/ headquarter). Statistical Analysis and chi-square test were done using the Statistical Analysis Program (SAS) Program. The results showed Murabahah which is an Islamic and a trade-based mode was dominant. The study revealed that the bank should compromise its role commercially and developmentally in financing agricultural technologies. It should adopt reliable innovative modes to help farmers achieving high levels of technology in agricultural production. Musharakah which is a form of partnership and an Islamic mode of finance is not widely used. It is a participatory approach in which both partners participate in the management and provision of capital and also share in the profit and loss. The study recommended Musharakah as the most appropriate mode to develop agricultural technologies in the sector.