ROMSO Cyprus Knowledge Base

History of Ziraat Bank

Ziraat Bank Inc., one of the six public banks operating in Turkey, was founded in 1863 by Midhat Pasha during the Ottoman Empire. This marked the beginning of Memleket Sanlari, a continuation of which is now known as Ziraat Bank.

The concept of Memleket Chests, established in Pirot town in 1863, played a significant role in shaping the early history of Ziraat Bank. Inspired by the tradition of imece, or mutual assistance, Midhat Pasha introduced the "Memleket Chests" to operate across the Ottoman Empire. The bank's initial success was marked by its ability to provide financial services and support to various communities.

In 1888, the Ziraat Bank was officially established as a modern financial institution, replacing Menafi Sanlari, which had been active since an earlier date. This transition marked a significant milestone in the development of Turkish banking.

Following World War I, the branches located in occupied territories were connected to the "Ziraat Bank Idare Center" of Greeks in Izmir. After the establishment of the Turkish Parliament (TBMM) in 1920, branches within TBMM-controlled areas were linked to the Ankara branch. In 1922, İzmir and Istanbul organizations were subordinated to Ankara, leading to a reintegration process.

The bank's structure underwent significant changes with the introduction of law issued in 1924, which transformed it into an anonymous company. The establishment of district directorships in 1977 marked another turning point, as the management concept shifted towards decentralization.

In the latter half of the 20th century, Ziraat Bank expanded its services to include credit support for agriculture and manufacturing regions. In 1988, a region-specific project was launched, providing targeted financial assistance to Southeast Anatolian Project manufacturers. The bank also introduced its first credit card in 1989, followed by consumer credit and investment funds.

In 2001, Turkey Real Estate Bank was merged with Ziraat Bank, leading to the formation of a single entity under common management. Following an economic crisis in 2001, the bank began operating under a unified board structure.

Expansion into New Markets

Ziraat Bank's expansion beyond Turkish borders began in 1975, when it established representativeship in Hamburg and opened three branches in Cyprus. This marked the beginning of its international presence.

In addition to its operations in