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Growth in Agricultural Loan Market Share for Arkansas Commercial Banks

Published online by Cambridge University Press:  28 April 2015

Bruce L. Ahrendsen ,
Bruce L. Dixon  and
Atien Priyanti
Bruce L. Ahrendsen
Affiliation:
University of Arkansas and Center for Farm and Rural Business Finance
Bruce L. Dixon
Affiliation:
University of Arkansas and Center for Farm and Rural Business Finance
Atien Priyanti
Affiliation:
University of Arkansas and Research Institute for Animal Production, Bogor, Indonesia
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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.

Keywords

banksfarm debtloan portfoliomarket share
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 26 , Issue 2 , December 1994 , pp. 430 - 442
Copyright
Copyright © Southern Agricultural Economics Association 1994

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References

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