Author:
Ahrendsen Bruce L.,Dixon Bruce L.,Lee LaDerrek T.
Abstract
AbstractIn an era of rapid consolidation in banking, the effect of mergers on the availability of credit to agricultural businesses is unclear. Commercial bank mergers have profoundly altered the urban credit marketplace and are positioned to do the same for the agricultural credit marketplace. Adjustment models are estimated with data on independent bank consolidations from 1988 through 1995. The regression results bode well for agricultural lending if acquiring banks have larger concentrations of assets in agriculture than acquired banks. Conversely, if acquiring banks have smaller concentrations than acquired banks, acquisitions have a negative impact on agricultural lending. Since most acquiring banks have smaller agricultural loan concentrations than acquired banks, there is concern for agricultural lending. However, other lenders are likely to fill credit gaps that develop.
Publisher
Cambridge University Press (CUP)
Subject
Economics and Econometrics,Agricultural and Biological Sciences (miscellaneous)
Reference14 articles.
1. Do Bank Mergers Reduce Lending to Businesses and Farmers? New Evidence from Tenth District States.;Keeton;Economic Review,1996
2. Post‐Acquisition Performance of Rural Banks
Cited by
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