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Abstract
This study examines the financial situation of the Farm Credit System Banks
for Cooperatives using comparative analysis for the period 1978 through 1991.
Profitability and leverage measures of the Banks for Cooperatives are compared
with similar measures of large commercial banks. The Banks for Cooperatives
were found to have performed as well as large commercial banks. Some differences
can be explained as compatible with differences in the goals and objectives of a
cooperative versus an investor-owned firm. Most differences can be attributed to
the financial strength of the Banks for Cooperatives relative to the commercial
banking industry.