Premium
Community Lending, Bank Efficiency, and Economic Dualism
Author(s) -
Weber William L.,
Devaney Michael
Publication year - 1998
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/1468-2257.00081
Subject(s) - dualism , financial system , rural area , business , economics , political science , philosophy , epistemology , law
The literature suggests that asymmetric information in less developed economies may contribute to credit‐market failure that is reflected in the economic efficiency of lending firms. This research tests whether rural banks located in the Lower Mississippi Delta Region (LMDR), the poorest rural region in the U.S., are less efficient than other rural banks. Rural banks in the LMDR are found to be technically less efficient than their non‐LMDR counterparts