Structure, performance, and risk management of financial institutions

The performance, management, and risk exposure of financial institutions operating in rural and agricultural markets determine the cost of agriculture’s ongoing access to financial capital. The evolution of general banking and agricultural finance research contributions in the structure, performance, and risk management of financial institutions lending to agriculture and providing financing to rural markets is described and discussed in this paper. A summary of future research priorities in each of these areas is also provided. Ongoing regulatory change, institution consolidation, financial innovations, and the changes occurring in the agricultural sector drive research opportunities in this area. Ongoing research will be critical to maintain efficient rural financial markets that can provide consistent and competitively priced credit for rural America.