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          Volume 31, Number 02, August 1999 >

Please use this identifier to cite or link to this item: http://purl.umn.edu/15363

Title: INDEPENDENT COMMERCIAL BANK MERGERS AND AGRICULTURAL LENDING CONCENTRATION
Authors: Ahrendsen, Bruce L.
Dixon, Bruce L.
Lee, Laderrek T.
Keywords: acquisition
agricultural loan portfolio
banks
consolidation
merger
Issue Date: 1999-08
Abstract: In an era of rapid consolidation in banking, the effect of mergers on the availability of credit to agricultural businesses is unclear. Commercial bank mergers have profoundly altered the urban credit marketplace and are positioned to do the same for the agricultural credit marketplace. Adjustment models are estimated with data on independent bank consolidations from 1988 through 1995. The regression results bode well for agricultural lending if acquiring banks have larger concentrations of assets in agriculture than acquired banks. Conversely, if acquiring banks have smaller concentrations than acquired banks, acquisitions have a negative impact on agricultural lending. Since most acquiring banks have smaller agricultural loan concentrations than acquired banks, there is concern for agricultural lending. However, other lenders are likely to fill credit gaps that develop.
URI: http://purl.umn.edu/15363
Institution/Association: Journal of Agricultural and Applied Economics>Volume 31, Number 02, August 1999
Total Pages: 13
Language: English
From Page: 215
To Page: 227
Collections:Volume 31, Number 02, August 1999

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