Rural Businesses Voice Few Complaints about Their Bankers

James M. McGlone

Rural America/ Rural Development Perspectives, 1991, vol. 07, issue 2

Abstract: Put aside those worries that the flow of rural credit may be jeopardized by the small size of rural populations. Rural borrowers are more satisfied with their banks than urban businesses are with theirs. Rural banks seem to have a good rapport with their business borrowers, they impose lower collateral requirements than urban banks, and they are more likely to approve loan applications. This does not necessarily mean that rural credit markets are adequate for development purposes, since we still don't know about the ability of potential borrowers to obtain credit. In addition, the relative lack of diversified loan portfolios contributes to a somewhat higher cost of credit for rural borrowers.

Keywords: Community/Rural/Urban Development; Financial Economics (search for similar items in EconPapers)
Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersra:310939

DOI: 10.22004/ag.econ.310939

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