Hostname: page-component-cd9895bd7-p9bg8 Total loading time: 0 Render date: 2024-12-23T15:57:49.047Z Has data issue: false hasContentIssue false
  • English
  • Français

Lending by Rural Banks Involved in Mergers

Published online by Cambridge University Press:  28 April 2015

Nicholas A. Walraven
Nicholas A. Walraven*
Affiliation:
Federal Reserve Board/Federal Reserve System
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper employed a variety of sources of data and a number of methods to describe rural lending markets. Over the sample period, 1992 through 1998, there was a pronounced trend towards affiliation of banks, both urban and rural, with holding companies, although over this period there was little change in the concentration of banking offices in rural areas. Using data from the 1993 National Survey of Small Business Finances, the study found some evidence that rural small businesses were less likely to apply for a loan than urban small firms although those rural firms that did apply were more likely to have their application accepted.

Keywords

mergerrural banks
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 31 , Issue 2 , August 1999 , pp. 201 - 214
Copyright
Copyright © Southern Agricultural Economics Association 1999

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Berger, Allen N., and Udell, Gregory F.. “Relationship lending and lines of credit in small firm finance.” Journal of Business 68(1995):351–382.CrossRefGoogle Scholar
Berger, Allen N., Saunders, Anthony, Scalise, Joseph M., and Udell, Gregory F.. “The effect of bank mergers and acquisitions on small business lending.” Mimeo, Federal Reserve Board, 1997.CrossRefGoogle Scholar
Cole, Rebel A. “The Importance of Relationships to the Availability of Credit,” Journal of Banking and Finance, forthcoming.Google Scholar
Cole, Rebel A., and Wolken, John D.. “Sources and uses of financial services by small businesses: Evidence from the 1993 National Survey of Small-Business Finances,” Federal Reserve Bulletin 81 (1995):629–670.Google Scholar
Cole, Rebel A., and Woodburn, Louise. “Bank and non-bank competition for small business credit: Evidence from the 1987 and 1993 National Surveys of Small Business Finances,” Federal Reserve Bulletin 82 (1996):983–995.CrossRefGoogle Scholar
Cornett, Marcia Millon and Tehranian, Hassan. “Changes in corporate performance associated with bank acquisitions,” Journal of Financial Economics 31(1992):211–234.CrossRefGoogle Scholar
Efron, B.The JackKnife, the Bootstrap, and Other Resampling Plans. Philadelphia: Society for Industrial and Applied Mathematics, 1982.CrossRefGoogle Scholar
Efron, B. and Tibshirani, R.. “Bootstrap measures for standard errors, confidence intervals, and other measures of statistical accuracy,” Statistical Science 1(1986): 54–77.Google Scholar
Elliehausen, Gregory E. and Wolken, John D.. “Banking markets and the use of financial services by small and medium-sized businesses” Federal Reserve Bulletin 76(1990):801–817.Google Scholar
Lawrence, Goldberg G., and White, Lawrence J.. “De novo banks and lending to small businesses: An Exploratory Analysis.” Journal of Banking and Finance forthcoming.Google Scholar
Greene, William. “Sample selection bias as a specification error.” Econometrica 49(1981):795–798.CrossRefGoogle Scholar
Heckman, James. “Sample selection bias as a specification error.” Econometrica 47(1979): 153–161.CrossRefGoogle Scholar
Hosmer, D. W. Jr., and Lemshow, S.. Applied logistic Regression, New York, NY: John Wiley & Sons, Inc., 1989.Google Scholar
Houston, Joel F., and Ryngaert, Michael D.. “The overall gains from large bank mergers.” Journal of Banking and Finance 18(1994): 1155–1176.CrossRefGoogle Scholar
Jayaratne, Jith and Wolken, John D.. “How Important are Small Banks to Small Business Lending? New Evidence From a Survey of Small Firms, The Consolidation of the Financial Services Industry.” Federal Reserve Bank of New York, March 1998.Google Scholar
Keeton, William R. “Do bank mergers reduce lending to businesses and farmers? New evidence from Tenth District states.“ Mimeo, Federal Reserve Bank of Kansas City, 1996.Google Scholar
Maddala, G. S.Limited Dependent and Qualitative Variables in Econometrics. Cambridge University Press: Cambridge, 1983.CrossRefGoogle Scholar
Munnell, , Alicia, , Tootell, Geoffery, Browne, Lynne, And McEneaney, James. “Mortgage Lending in Boston: Interpreting the HMDA Data.” American Economic Review 86(1996):25–53.Google Scholar
Peek, Joseph, and Rosengren, Eric. “Bank consolidation and small business lending: It's not just bank size that matters.” Journal of Banking and Finance, forthcoming.Google Scholar
Petersen, Mitchell A., and Rajan, Raghuram G.. “The benefits of lending relationships: Evidence from small businesses.” Journal of Finance 49(1994):3–37.CrossRefGoogle Scholar
Petersen, Mitchell A., and Rajan, Raghuram G.. “The effect of credit market competition on lending relationships.” Quarterly Journal of Economics 105(1995):407–443.CrossRefGoogle Scholar
Pilloff, Steven J. “Performance changes and shareholder wealth creation associated with mergers of publicly traded banking institutions.” Journal of Money, Credit, and Banking 28(1996): 294–310.CrossRefGoogle Scholar
Rhoades, Stephen A. “Market Share Inequality, the HHI, and Other Measures of the Firm-Composition of a Market.” Review of Industrial Organization, 10(1995):657–674.CrossRefGoogle Scholar
Schrantz, Mary S. “Takeovers improve performance: Evidence from the banking industry.” Journal of Political Economy 101(1993):299–326.CrossRefGoogle Scholar
StataCorp. Stata Statistical Software: Release 5.0 College Station, TX: Stata Corporation, 1997.Google Scholar
Strahan, Philip E. and Weston, James. “Small business lending and the changing structure of the banking industry.” Journal of Banking and Finance, forthcoming.Google Scholar
Walraven, Nicholas. “Small business lending by banks involved in mergers.” Finance and Discussion Series 97–25, Federal Reserve Board, Washington, DC, 1997.CrossRefGoogle Scholar