Hostname: page-component-78c5997874-xbtfd Total loading time: 0 Render date: 2024-11-14T05:17:57.115Z Has data issue: false hasContentIssue false
  • English
  • Français

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
Get access Rights & Permissions [Opens in a new window]

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

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

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.Google Scholar
Arkansas Agricultural Statistical Service. Arkansas Agricultural Statistics. Arkansas Agricultural Experiment Station, University of Arkansas, Fayetteville. 1982 and 1987.Google Scholar
Arkansas State and County Economic Data. Regional Economic Analysis. University of Arkansas at Little Rock. April, 1991.Google Scholar
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.Google Scholar
Belsley, D.A., Kuh, E., and Welsch, R.E.. Regression Diagnostics. John Wiley and Sons, Inc. 1980.CrossRefGoogle Scholar
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.Google Scholar
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):52–66.Google Scholar
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): 15–27.Google Scholar
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):69–78.CrossRefGoogle Scholar
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.CrossRefGoogle Scholar
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.CrossRefGoogle Scholar
Pederson, Glenn D. “Agricultural Bank Portfolio Adjustments to Risk.” Amer. J. Agr. Econ. 74(1992):672–81.CrossRefGoogle Scholar
Priyanti, Atien. “Factors Influencing Changes in Commercial Banks Market Share of Arkansas Agricultural Loans.” Unpublished Master thesis, University of Arkansas, Fayetteville. May 1993.Google Scholar
Ramsey, J.B. “Tests for Specification Errors in Classical Linear Least Squares Regression Analysis.” J. Royal Statistical Society, Series B. 31(1969):350–71.Google Scholar
Robison, L.J., and Barry, P.J.. “Portfolio Adjustments: An Application to Rural Banking.” Amer. J. Agr. Econ. 59(1977):311–20.CrossRefGoogle Scholar
U.S. Department of Agriculture, Economic Research Service. Agricultural Income and Finance. Situation and Outlook Report. AFO-48. Washington, D.C. February 1993.Google Scholar
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.Google Scholar
U.S. Department of Commerce, Bureau of Economic Analysis. State Personal Income: 1976-90. Washington, D.C: U.S. Government Printing Office. 1990.Google Scholar
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.Google Scholar
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):49–59.Google Scholar
Zellner, A. 1962. “An Efficient Method of Estimating Seemingly Unrelated Regressions and Tests of Aggregation Bias.” J. Amer. Statistical Association. 57(1962):348–68.CrossRefGoogle Scholar