IDEAS home Printed from https://ideas.repec.org/a/ags/joaaec/15326.html
   My bibliography  Save this article

Factors Affecting Commercial Bank Lending To Agriculture

Author

Listed:
  • Betubiza, Eustacius N.
  • Leatham, David J.

Abstract

A tobit econometric procedure was used to examine the effect of selected demand and supply factors on nonreal estate agricultural lending by commercial banks in Texas. Results show that banks have reduced their agricultural loan portfolios in response to increased use of interest sensitive deposits after deregulation. Moreover, almost half of this decrease came from banks that stopped making agricultural loans. Also, results show that banks affiliated with multi-bank holding companies lend less money to agriculture relative to their assets than do independent banks.

Suggested Citation

  • Betubiza, Eustacius N. & Leatham, David J., 1995. "Factors Affecting Commercial Bank Lending To Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(1), pages 1-15, July.
    • Handle: RePEc:ags:joaaec:15326
    DOI: 10.22004/ag.econ.15326
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/15326/files/27010112.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.15326?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bundt, Thomas P & Schweitzer, Robert, 1989. "Deregulation, Deposit Markets, and Banks' Costs of Funds," The Financial Review, Eastern Finance Association, vol. 24(3), pages 417-430, August.
    2. R. Alton Gilbert, 1986. "Requiem for Regulation Q: what it did and why it passed away," Review, Federal Reserve Bank of St. Louis, issue Feb, pages 22-37.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Laura Brad & Gabriel Popescu & Alina Zaharia & Maria Claudia Diaconeasa & Daniela Mihai, 2018. "Exploring the Road to Agricultural Sustainability by Assessing the EU Debt Influencing Factors," Sustainability, MDPI, vol. 10(7), pages 1-46, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Groll, Thomas & O’Halloran, Sharyn & McAllister, Geraldine, 2021. "Delegation and the regulation of U.S. financial markets," European Journal of Political Economy, Elsevier, vol. 70(C).
    2. Jonas D. M. Fisher & Martin Gervais, 2007. "First-time home buyers and residential investment volatility," Working Paper Series WP-07-15, Federal Reserve Bank of Chicago.
    3. Krishnamurthy, Arvind & Vissing-Jorgensen, Annette, 2015. "The impact of Treasury supply on financial sector lending and stability," Journal of Financial Economics, Elsevier, vol. 118(3), pages 571-600.
    4. Michael D. Bordo & Angela Redish & Hugh Rockoff, 2015. "Why didn't Canada have a banking crisis in 2008 (or in 1930, or 1907, or …)?," Economic History Review, Economic History Society, vol. 68(1), pages 218-243, February.
    5. Gorton, Gary & Metrick, Andrew, 2013. "Securitization," Handbook of the Economics of Finance, in: G.M. Constantinides & M. Harris & R. M. Stulz (ed.), Handbook of the Economics of Finance, volume 2, chapter 0, pages 1-70, Elsevier.
    6. Lucas, Robert E. & Nicolini, Juan Pablo, 2015. "On the stability of money demand," Journal of Monetary Economics, Elsevier, vol. 73(C), pages 48-65.
    7. Janusz Krajewski, 2007. "Deposit Rate Ceilings as a Tool of Prudential Regulation," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 1(4), December.
    8. Eccles, Peter & Grout, Paul & Zalewska, Anna & Siciliani, Paolo, 2023. "Open banking, shadow banking and regulation," Bank of England working papers 1039, Bank of England.
    9. Joao Rafael Cunha, 2020. "The Financial Regulatory Cycle," Discussion Paper Series, School of Economics and Finance 202006, School of Economics and Finance, University of St Andrews.
    10. Paul E. Orzechowski, 2019. "The bank capital channel and bank profits," Review of Financial Economics, John Wiley & Sons, vol. 37(3), pages 372-388, July.
    11. Nielsen, Carsten & Weinrich, Gerd, 2019. "The welfare costs of bank regulation by deposit rate ceilings," Economics Letters, Elsevier, vol. 179(C), pages 33-37.
    12. Rotemberg, Julio J., 2015. "The Federal Reserve׳s abandonment of its 1923 objectives of monetary policy," Research in Economics, Elsevier, vol. 69(4), pages 475-493.
    13. Douglas J. Elliott & Greg Feldberg & Andreas Lehnert, 2013. "The history of cyclical macroprudential policy in the United States," Finance and Economics Discussion Series 2013-29, Board of Governors of the Federal Reserve System (U.S.).
    14. Antoine Bouveret & Antoine Martin & Patrick E. McCabe, 2022. "Money Market Fund Vulnerabilities: A Global Perspective," Finance and Economics Discussion Series 2022-012, Board of Governors of the Federal Reserve System (U.S.).
    15. repec:pri:cepsud:141rosen is not listed on IDEAS
    16. Joao Rafael Cunha, 2020. "The Advent of a New Banking System in the U.S. - Financial Deregulation in the 1980s," Discussion Paper Series, School of Economics and Finance 202003, School of Economics and Finance, University of St Andrews, revised 03 Aug 2020.
    17. Daniel L. Thornton, 2000. "The relationship between the federal funds rate and the Fed's federal funds rate target: is it open market or open mouth operations?," Working Papers 1999-022, Federal Reserve Bank of St. Louis.
    18. Kristopher S. Gerardi & Harvey S. Rosen & Paul S. Willen, 2006. "Do households benefit from financial deregulation and innovation?: the case of the mortgage market," Public Policy Discussion Paper 06-6, Federal Reserve Bank of Boston.
    19. Anderson, Richard G. & Duca, John V. & Fleissig, Adrian R. & Jones, Barry E., 2019. "New monetary services (Divisia) indexes for the post-war U.S," Journal of Financial Stability, Elsevier, vol. 42(C), pages 3-17.
    20. Arvind Krishnamurthy & Annette Vissing-Jorgensen, 2012. "The Aggregate Demand for Treasury Debt," Journal of Political Economy, University of Chicago Press, vol. 120(2), pages 233-267.
    21. Konzelmann, S. & Fovargue-Davies, M., 2011. "Anglo-Saxon Capitalism in Crisis? Models of Liberal Capitalism and the Preconditions for Financial Stability," Working Papers wp422, Centre for Business Research, University of Cambridge.

    More about this item

    Keywords

    Agricultural Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:joaaec:15326. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.