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Consistency of credit evaluations at agricultural banks

Author

Listed:
  • Paul N. Ellinger

    (Department of Agricultural Economics, Texas A&M University)

  • Nate S. Splett

    (Department of Agricultural Economics at the University of Illinois at Urbana-Champaign)

  • Peter J. Barry

    (Department of Agricultural Economics at the University of Illinois at Urbana-Champaign)

Abstract

Commercial banks are using more comprehensive and formal methods to evaluate agricultural producers. This study reports the characteristics and performance of 87 credit scoring models currently in use by lenders. True product-moment and rank correlations are used to measure consistency among the models. The results of this studs underscore the continuing lack of a uniform model or models for lenders to use in evaluating the creditworthiness of agricultural borrowers. The relatively high disparity among the systems now in place suggest informational deficiencies in this aspect of rural credit markets, and the need for further interchange among lenders, borrowers and analysts about the properties of credit scoring models. © 1992 John Wiley & Sons, Inc.

Suggested Citation

  • Paul N. Ellinger & Nate S. Splett & Peter J. Barry, 1992. "Consistency of credit evaluations at agricultural banks," Agribusiness, John Wiley & Sons, Ltd., vol. 8(6), pages 517-536.
    • Handle: RePEc:wly:agribz:v:8:y:1992:i:6:p:517-536
    DOI: 10.1002/1520-6297(199211)8:6<517::AID-AGR2720080604>3.0.CO;2-E
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    References listed on IDEAS

    as
    1. Hardy, William E. & Weed, Johno B., 1980. "Objective Evaluation for Agricultural Lending," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 12(1), pages 159-164, July.
    2. Hardy, William E., Jr. & Weed, Johno B., 1980. "Objective Evaluation For Agricultural Lending," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(1), pages 1-6, July.
    3. Cole R. Gustafson, 1989. "Credit Evaluation: Monitoring the Financial Health of Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(5), pages 1145-1151.
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    Cited by:

    1. Bard, Sharon K. & Barry, Peter J., 2000. "Developing A Scale For Assessing Risk Attitudes Of Agricultural Decision Makers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(1), pages 1-17.
    2. Davidova, Sophia & Latruffe, Laure & Ratinger, Tomas, 2005. "Performance of Different Institutional Units in the Czech Republic and the Role of External Financing," 94th Seminar, April 9-10, 2005, Ashford, UK 24421, European Association of Agricultural Economists.
    3. repec:ebl:ecbull:v:17:y:2005:i:9:p:1-11 is not listed on IDEAS
    4. repec:ebl:ecbull:v:17:y:2006:i:3:p:1-8 is not listed on IDEAS

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