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The Spatial Extent of Commercial Bank Deposit and Loan Contracts

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  • Kilkenny, Maureen

Abstract

Two sets of null hypotheses are posed and tested: First, that levels of both deposits and loans are positively related to the size of the deposit market and unrelated to distance to that market. Second, competition has no effect on the loans or deposits from or to a bank office. New primary survey data is analyzed. Distance is significant in both deposit and loan markets. Bank lending is almost wholly contained within an hour’s drive from the office. Local competition doesn’t matter for deposits, suggesting deposit markets are spatially integrated. It matters for loans, suggesting spatial credit market segmentation.

Suggested Citation

  • Kilkenny, Maureen, 2006. "The Spatial Extent of Commercial Bank Deposit and Loan Contracts," 2006 Agricultural and Rural Finance Markets in Transition, October 2-3, 2006, Washington, DC 133084, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    • Handle: RePEc:ags:nc2006:133084
    DOI: 10.22004/ag.econ.133084
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    References listed on IDEAS

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    Agricultural Finance;

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