Agricultural loan pricing by banks in Ghana: a panel data analysis

IF 1.4 Q3 ECONOMICS
Raymond K. Dziwornu, Eric B. Yiadom, Sampson B. Narteh-yoe
{"title":"Agricultural loan pricing by banks in Ghana: a panel data analysis","authors":"Raymond K. Dziwornu, Eric B. Yiadom, Sampson B. Narteh-yoe","doi":"10.1108/ajems-12-2022-0504","DOIUrl":null,"url":null,"abstract":"Purpose The cost of agricultural loans is a major constraint to the growth of the agriculture sector. This paper examines agricultural loan pricing by banks in Ghana using panel data analysis. Design/methodology/approach Data were obtained from audited financial reports of 15 agricultural loan lending banks from 2010 to 2017. The study applies the random-effect model and the fixed-effect model in the analysis and uses the system generalized system method of moment to check the robustness of the results from the baseline models. Findings The study found that agricultural loan pricing by banks is significantly influenced by risk premium, cost of funds, loan impairment, agricultural growth rate and food inflation. Banks should leverage emerging technologies to de-risk agriculture loan pricing to allay the fear of default. Farmers should look for long-term and relatively cheaper funds to support agricultural loans. Increasing credit to the agricultural sector could increase output, thereby reducing food inflation uncertainty for competitive pricing of agricultural loans. Originality/value Agriculture employs about 52% of Ghana's labor force, contributing about 20% to GDP. But it is “under” financed. This study leads the way in unraveling the factors accounting for the high prices of agricultural loans in Ghana. This study further contributes to policy development toward increasing credit to the agricultural sector.","PeriodicalId":46031,"journal":{"name":"African Journal of Economic and Management Studies","volume":"25 1","pages":"0"},"PeriodicalIF":1.4000,"publicationDate":"2023-10-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"African Journal of Economic and Management Studies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/ajems-12-2022-0504","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 1

Abstract

Purpose The cost of agricultural loans is a major constraint to the growth of the agriculture sector. This paper examines agricultural loan pricing by banks in Ghana using panel data analysis. Design/methodology/approach Data were obtained from audited financial reports of 15 agricultural loan lending banks from 2010 to 2017. The study applies the random-effect model and the fixed-effect model in the analysis and uses the system generalized system method of moment to check the robustness of the results from the baseline models. Findings The study found that agricultural loan pricing by banks is significantly influenced by risk premium, cost of funds, loan impairment, agricultural growth rate and food inflation. Banks should leverage emerging technologies to de-risk agriculture loan pricing to allay the fear of default. Farmers should look for long-term and relatively cheaper funds to support agricultural loans. Increasing credit to the agricultural sector could increase output, thereby reducing food inflation uncertainty for competitive pricing of agricultural loans. Originality/value Agriculture employs about 52% of Ghana's labor force, contributing about 20% to GDP. But it is “under” financed. This study leads the way in unraveling the factors accounting for the high prices of agricultural loans in Ghana. This study further contributes to policy development toward increasing credit to the agricultural sector.
加纳银行农业贷款定价:面板数据分析
农业贷款成本是制约农业部门发展的主要因素。本文采用面板数据分析对加纳银行的农业贷款定价进行了研究。数据来源于15家农业贷款银行2010 - 2017年经审计的财务报告。本研究采用随机效应模型和固定效应模型进行分析,并采用系统广义系统矩法对基线模型结果的稳健性进行检验。研究发现,银行农业贷款定价受到风险溢价、资金成本、贷款减值、农业增长率和食品通胀的显著影响。银行应利用新兴技术降低农业贷款定价的风险,以减轻对违约的担忧。农民应该寻找长期和相对便宜的资金来支持农业贷款。增加对农业部门的信贷可以增加产出,从而减少粮食通胀对农业贷款竞争性定价的不确定性。农业雇佣了约52%的加纳劳动力,贡献了约20%的GDP。但它的资金“不足”。这项研究在揭示加纳农业贷款高价格的因素方面发挥了带头作用。这项研究进一步有助于制定增加农业部门信贷的政策。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
3.20
自引率
7.70%
发文量
41
期刊介绍: African Journal of Economic and Management Studies (AJEMS) advances both theoretical and empirical research, informs policies and practices, and improves understanding of how economic and business decisions shape the lives of Africans. AJEMS is a multidisciplinary journal and welcomes papers from all the major disciplines in economics, business and management studies.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信