The Effects of Management Decisions on Agricultural Bank Failures

Michael Belongia and R. Alton Gilbert

American Journal of Agricultural Economics, 1990, vol. 72, issue 4, 901-910

Abstract: The assertion that local economic conditions have been responsible for the failures of large numbers of agricultural banks is investigated by pairing solvent and failed banks within rural counties and examining whether balance sheet items alone explain differences in the probability of failure for the two groups of banks. Estimation of a probit model indicates that higher ratios of loans to assets and agricultural to total loans were associated with higher probabilities of failure; banks with higher capital ratios and those affiliated with multibank holding companies had lower probabilities of failure.

Date: 1990
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Working Paper: EFFECTS OF MANAGEMENT DECISIONS ON AGRICULTURAL BANK FAILURES (1989)
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:72:y:1990:i:4:p:901-910.

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