THE EXPERIENCE OF DEVELOPED FOREIGN COUNTRIES IN FINANCING THE AGRICULTURAL SECTOR BY COMMERCIAL BANKS

Azizov Shukhrat Makhmutovich

Authors

Azizov Shukhrat Makhmutovich Head of the Payments Department of the “Human” Social Services Center of Yashnobod District under the National Agency for Social Protection under the President of the Republic of Uzbekistan

Keywords:

Agricultural sector, commercial banks, agricultural financing, foreign experience, developed countries, credit mechanisms, rural development, financial instruments, government support, risk management

Abstract

This paper examines the experience of developed foreign countries in financing the agricultural sector through commercial banks. The study highlights the importance of bank-based financial support in promoting agricultural productivity, modernization, and sustainable rural development. Special attention is given to the financial instruments and mechanisms used by commercial banks, including agricultural loans, credit guarantees, interest rate subsidies, and risk management tools such as insurance systems.

The research analyzes best practices from developed economies, focusing on the role of government support, regulatory frameworks, and public–private partnerships in reducing credit risks and improving access to finance for agricultural producers. Based on the analysis, the paper identifies key factors contributing to effective agricultural financing systems and discusses the potential application of foreign experience in developing and transition economies.