@article{Olomola:277445,
      recid = {277445},
      author = {Olomola, A.},
      title = {Financial Stimulus And Performance of the Commercial  Agricultural Credit Scheme (CACS) in Nigeria},
      address = {2018-07},
      year = {2018},
      abstract = {This study sought to determine the impact of the financial  capital intervention (stimulus to the banking sector) on  credit flow to the agricultural sector using random-effects  Tobit econometric technique and proffer suggestions for  improved participation of the banking sector in  agricultural financing in Nigeria. The results show that  loan supply is higher for banks that are younger and bigger  in size and that it is significantly higher under the  commercial agricultural credit scheme (CACS) than before;  implying that the financial stimulus have elicited  significantly positive response from the commercial banks.  Prior to CACS rising borrowers  risk was associated with  higher probability of loan supply whereas under CACS  risk-taking by commercial banks has been moderated due to  regulatory interventions by the CBN including intensive  monitoring and enforcement of operational guidelines.  Commercial banks do not increase agricultural lending due  to higher leverage, greater liquidity and wider network of  branches. They do so because of access to off-balance sheet  resources. If their performance must increase as expected,  public spending on infrastructural development must also  increase. And to sustain the CACS, tapping alternative  sources of funds such as the pension fund, accumulated  funds in CACS repayment account, sugar levy account etc. is  strongly recommended. 

Acknowledgement :  Grateful  acknowledgement is due to the International Food Policy  Research Institute (IFPRI) for its financial support for  this study. The administrative support of the Central Bank  of Nigeria (CBN) in granting access to the required data is  highly appreciated. In particular, I owe a debt of  gratitude to the officials of the Development Finance  Deparment of the CBN and Agricultural Finance Departments  of the Deposit Money Banks for their cooperation during the  data collection exercise for this study.},
      url = {http://ageconsearch.umn.edu/record/277445},
      doi = {https://doi.org/10.22004/ag.econ.277445},
}