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https://doi.org/10.2139/ssrn.3...
Article . 2002 . Peer-reviewed
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Relationship Lending and Denovo Banks: An Examination of Bank Lending to Small Farm Borrowers

Authors: Jalal Akhavein; Lawrence G. Goldberg; Lawrence J. White;

Relationship Lending and Denovo Banks: An Examination of Bank Lending to Small Farm Borrowers

Abstract

In this paper we examine the lending by small banks to small farms. We find that relationships, as measured by the length of tenure of farm operators, are positively related to bank lending. We also find that denovo banks have a positive tendency to lend to small farms, similar to the tendency of denovo banks to lend to small businesses generally. When existing relationships between borrowers and incumbent lenders are stronger, however, denovo banks have greater difficulties in lending to small farms. Finally, we find that, even within the category of small banks, lending to small farms (as a percentage of a bank's assets) tends to decrease as the bank increases in size. We believe that small farms are a category of small enterprises that have been under-researched in the lending literature and that further study of these relationships would yield new and interesting results.

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Keywords

Banks; loans; lending relationships; denovo banks; agriculture; farms, jel: jel:Q14, jel: jel:G21

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
1
Average
Average
Average
bronze