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.
Yin, Zhichao; Meng, Lei; and Sha, Yezhou
"DETERMINANTS OF AGRICULTURE-RELATED LOAN DEFAULT: EVIDENCE FROM CHINA,"
Bulletin of Monetary Economics and Banking: Vol. 23:
0, Article 7.
Available at: https://bulletin.bmeb-bi.org/bmeb/vol23/iss0/7