Document Type
Article
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.
Recommended Citation
Yin, Zhichao; Meng, Lei; and Sha, Yezhou
(2020)
"DETERMINANTS OF AGRICULTURE-RELATED LOAN DEFAULT: EVIDENCE FROM CHINA,"
Bulletin of Monetary Economics and Banking: Vol. 23:
No.
0, Article 7.
DOI: https://doi.org/10.21098/bemp.v23i0.1160
Available at:
https://bulletin.bmeb-bi.org/bmeb/vol23/iss0/7
First Page
129
Last Page
150
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Country
China
Affiliation
Capital University of Economics and Business
