Skip to main content Accessibility help
×
Home

Growth in Agricultural Loan Market Share for Arkansas Commercial Banks

  • Bruce L. Ahrendsen (a1), Bruce L. Dixon (a1) and Atien Priyanti (a2)

Abstract

Changes in commercial bank market shares of farm debt are decomposed into portfolio decisions, loanable funds availability and loan market size for 64 counties in Arkansas from 1986 through 1990. A seemingly unrelated regression model is hypothesized to identify county characteristics that are related to changes in commercial bank market shares. Regression results indicate that county differences in economic activity, the relative risk associated with agriculture, farm structure and regional location contributed to changes in commercial bank market shares. The results imply a market niche for rural commercial banks emphasizing agricultural loans in the presence of unlimited branch banking.

Copyright

References

Hide All
Ahrendsen, B.L., Priyanti, Atien and Dixon, B.L.. Factors Influencing Changes in Commercial Banks' Market Share of Arkansas Agricultural Loans. Arkansas Agricultural Experiment Station, University of Arkansas Division of Agriculture, Fayetteville, Bulletin 937. September 1993.
Arkansas Agricultural Statistical Service. Arkansas Agricultural Statistics. Arkansas Agricultural Experiment Station, University of Arkansas, Fayetteville. 1982 and 1987.
Arkansas State and County Economic Data. Regional Economic Analysis. University of Arkansas at Little Rock. April, 1991.
Barkley, D.L., Mellon, C., and Potts, G.T.. “Effects of Banking Structure on the Allocation of Credit to Nonmetropolitan Communities.W. J. Agr. Econ. 9(1984):283–92.
Belsley, D.A., Kuh, E., and Welsch, R.E.. Regression Diagnostics. John Wiley and Sons, Inc. 1980.
Betubiza, E.N., and Leatham, D.J.. “Composition of Bank Liabilities in a Deregulated Environment and Its Impact on Agricultural Lending.” Paper presented at the NC-207 Regional Research Committee annual meeting, September 27-28, 1992.
Clark, M.A.Are Small Rural Banks Credit-Constrained? A Look at the Seasonal Borrowing Privilege in the Eighth Federal Reserve District.Federal Reserve Bank of St. Louis Review 74(May/June 1992):5266.
Dixon, B.L., Ahrendsen, B.L. and Barry, P.J.. “Explaining Loan Pricing Differences Among Banks: Use of Incidental Truncated Regression.Agr. Finan. Rev. 53(1993): 1527.
Gilbert, R.A., and Belongia, M.T.. “The Effects of Affiliation with Large Bank Holding Companies on Commercial Bank Lending to Agriculture.Amer. J. Agr. Econ. 70(1988):6978.
Judge, G.G., Hill, R.C., Griffiths, W.E., Luthkepohl, H., and Lee, T.C.. Introduction to the Theory and Practice of Econometrics. Second Edition. John Wiley and Sons. 1988.
Lawrence, D.B. and Klugman, M.R.. “Interstate Banking in Rural Markets: The Evidence from the Corn Belt.J Banking and Finan. 15( 1991): 1081–91.
Pederson, Glenn D.Agricultural Bank Portfolio Adjustments to Risk.Amer. J. Agr. Econ. 74(1992):672–81.
Priyanti, Atien. “Factors Influencing Changes in Commercial Banks Market Share of Arkansas Agricultural Loans.” Unpublished Master thesis, University of Arkansas, Fayetteville. May 1993.
Ramsey, J.B.Tests for Specification Errors in Classical Linear Least Squares Regression Analysis.J. Royal Statistical Society, Series B. 31(1969):350–71.
Robison, L.J., and Barry, P.J.. “Portfolio Adjustments: An Application to Rural Banking.Amer. J. Agr. Econ. 59(1977):311–20.
U.S. Department of Agriculture, Economic Research Service. Agricultural Income and Finance. Situation and Outlook Report. AFO-48. Washington, D.C. February 1993.
U.S. Department of Agriculture, Economic Research Service. Economic Indicators of the Fam Sector: State Financial Summary. 1992. ECIFS 12-2, Washington, D.C. January 1994.
U.S. Department of Commerce, Bureau of Economic Analysis. State Personal Income: 1976-90. Washington, D.C: U.S. Government Printing Office. 1990.
White, K.J., Wong, S.D., Whistler, D., and Haun, S.A.. SHAZAM Econometrics Computer Program User's Reference Manual. Version 6.2. McGraw-Hill Book Company. 1990.
Wilson, Paul N., and Barkley, D.L.. “Commercial Bank Market Shares: Structural Factors Influencing Their Decline in the Agricultural Sector.Agr. Finan. Rev. 48(1988):4959.
Zellner, A. 1962. “An Efficient Method of Estimating Seemingly Unrelated Regressions and Tests of Aggregation Bias.J. Amer. Statistical Association. 57(1962):348–68.

Keywords

Growth in Agricultural Loan Market Share for Arkansas Commercial Banks

  • Bruce L. Ahrendsen (a1), Bruce L. Dixon (a1) and Atien Priyanti (a2)

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed