FACTORS AFFECTING COMMERCIAL BANK LENDING TO AGRICULTURE

A tobit econometric procedure was used to examine the effect of selected demand and supply factors on nonreal estate agricultural lending by commercial banks in Texas. Results show that banks have reduced their agricultural loan portfolios in response to increased use of interest sensitive deposits after deregulation. Moreover, almost half of this decrease came from banks that stopped making agricultural loans. Also, results show that banks affiliated with multi-bank holding companies lend less money to agriculture relative to their assets than do independent banks.


Issue Date:
1995-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/15326
Published in:
Journal of Agricultural and Applied Economics, Volume 27, Number 1
Page range:
112-126
Total Pages:
15




 Record created 2017-04-01, last modified 2017-08-23

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