AGRICULTURAL LENDING POLICIES OF COMMERCIAL-BANKS - CONSEQUENCES OF BANK DOMINANCE AND DEPENDENCY

Many banks view agricultural loans as risky and seek to channel credit into less risky arrangements. Resource-dependency and bank-control theory serve as theoretical underpinnings to explore the effects of farm size and bank dominance and dependency relationships on loans for agriculture. In a study of 211 Texas commercial banks, indicators of dominance and dependency (external control, internal control, employee autonomy), bank size, and differentiation are used to explain the propensity of banks to make loans for farms of various sizes.-from Authors

AGRICULTURAL LENDING POLICIES OF COMMERCIAL-BANKS - CONSEQUENCES OF BANK DOMINANCE AND DEPENDENCY Academic Article