Risk Management in Agricultural Banks: An Application of Endogenous Switching Model

Based on the results from endogenous switching regression, this paper shows that derivatives activities partially mitigate the negative effects of credit risks and interest risks during and after 2008 crisis and improve agricultural banks’ profitability. In particular, without the use of derivatives, user banks would have had 12% lower profitability.


Issue Date:
2013
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/143092
Note:
This paper is prepared for SAEA 2013 conference
Series Statement:
Paper
201




 Record created 2017-04-01, last modified 2017-05-27

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