A Firm-Level Model for Commercial Banks Servicing Agriculture: A Multi-Stage Stochastic Programming Approach

The model results depend upon the model specification as well as the linkage between the bank and its external environments. In general, the differences between the balance sheet decisions made by the bank under the alternative scenarios are not large. Major findings of this study are (1) profitability is not substantially affected by alternative funds; (2) alternative funds aid interest rate risk management; (3) alternative funding is advantageous when deposit funds are declining; (4) alternative funds are needed to expand loan volume in periods of high loan demand; (5) expansion of the collateral base may not be needed; (6) loan demand, policy constraints, and gap ratios are often constraining the level of alternative funds used; and (7) arbitraging may occur in banks' investment portfolio as additional funding is used.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Agricultural Economics

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2015

Author dc:creator

• Jeon, Dae-Seong

Contributors dc:contributor

• Paul Ellinger

• Business Administration, Banking

Language dc:language

eng

Identifier

(MiAaPQ)AAI9944893

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/83037