Article Title

DETERMINANTS OF AGRICULTURE-RELATED LOAN DEFAULT: EVIDENCE FROM CHINA

Authors

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

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