DETERMINANTS OF AGRICULTURE-RELATED LOAN DEFAULT: EVIDENCE FROM CHINA

Zhichao Yin, Lei Meng and Yezhou Sha ()
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Zhichao Yin: Capital University of Economics and Business
Lei Meng: East China University of Science and Technology
Yezhou Sha: Capital University of Economics and Business

Bulletin of Monetary Economics and Banking, 2020, vol. 23, issue Special Issue, 129-150

Abstract: This paper investigates agriculture-related loan default in 2002–2009 through a large data set from a leading Chinese state-owned bank. Using logit regression, we find the default rate on agriculture-related loans is significantly higher than that on non–agriculture-related loans. We find that base interest rates, loan maturity, the type of collateral, firm size, ownership structure, and managerial quality rating have a significant impact on agriculture-related loan default, but this also depends on how agriculture-related loans are defined. The results provide insight into the real impact of monetary policy on agriculture-related lending.

Keywords: Agriculture-related Loan; Default; Credit Risk; Monetary Policy; Collateral (search for similar items in EconPapers)
JEL-codes: G38 H23 O13 P23 Q14 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:23:y:2020:i:spg:p:129-150

DOI: 10.21098/bemp.v23i0.1160

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