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This study examines the impacts of the Ethiopian developmental state model on the competition, efficiency and profitability of banks.

The competition, efficiency and profitability of the Ethiopian bank are measured using Panzar Rose, data envelopment analysis and financial ratio. Fixed-effect panel regression methods are applied to test the direction and strength of association between the Ethiopian developmental state model and the competition, efficiency and profitability of the country's banks while controlling bank-specific market structure and macroeconomic factors.

The Ethiopian developmental state model embeds the state-directed financial system, which affects the banking industry using a range of credit allocation instruments. Of which, directed credit schemes, interest rate control and the lack of financial freedom reduce the competition and efficiency of banks. The National Bank of Ethiopia (NBE) advances to the government and the sale of Treasury bills to a captive market enhances banking competition while negatively affecting banking efficiency. Interest rate control and the lack of financial freedom lower banking profitability. Unexpectedly, directed credit schemes improve banking profitability.

As with any study, this one has limitations. The intra-period comparison of efficiency is based on balanced data. Future studies can use methods that can measure the efficiency of banks using unbalanced data. The computation of the yearly H-statistic is constrained by the small sample size. The use of high-frequency data for measuring competition can provide us with better insights into banking competition in Ethiopia. Furthermore, there are a number of methods for measuring banking competition, efficiency and profitability with different assumptions. Approaching the subject of this study by applying different methods will offer different insights.

The contributions of this study to practice are at two levels. First, at the policy level, it enhances our understanding of the impacts of developmental state model policies, as implemented in Ethiopia, on the banking industry and therefore provides suggestions to policymakers to reform the sector's policies. Second, it offers input to the management of banks regarding the factors that impact the industry.

The banking industry is often studied in the context of financial liberalisation. The originality of this study lies in investigating how the competition, efficiency and profitability of banks are affected when operating in the context of significant state interventions in the industry.

The purpose of this paper is to present a discussion on the idea of “policy rationing”. Policy rationing refers to constraining impacts on farm credit through policy action or inaction. To present the ideas the author discusses ten themes in policy rationing, ranging from macro‐finance policies to smart lending and financial inclusion.

The paper is developed as a narrative on agricultural credit policies based largely on existing literature.

This paper argues that the various critiques of rural credit policy in favor of free market principles have generally not worked in developing economies. Large numbers of farmers do not have access to formal credit. It is argued that there is a role for government and credit programs.

The opinions expressed in this paper are based on existing literature and not all ideas hold with general agreement across researchers and practitioners. The discussion is not exhaustive and in some cases the ideas might have been parsed further.

In this paper the author discusses ten themes that he thinks are relevant for a balanced discussion of farm credit in a development context. These themes illustrate a variety of complexities with respect to rural credit policy. The author ends by restating the themes in the form of ten questions that should be asked in whole, or in part, before any farm credit policy is field‐implemented.

This paper deals with a broad range of issues on rural credit policy. It is directed towards a reformation of ideas about credit policy, especially in developing economies. It is argued that, all things considered, on balance there is a role for government in rural credit policy.

There is much discourse amongst development economist about the role of government and credit policy in agricultural development. By thinking of government action or inaction as a form of policy rationing, some clarification is brought to the policy debate.

Built upon brand attitude literature, particularly the cognitive dissonance theory and contrast theory, the authors' conceptual framework aims to explain how prior consumer satisfaction with each alliance partner affects consumer attributions (i.e. credit or blame) directed toward each partner for both highly satisfying and less‐than‐highly satisfying alliance experiences.

This paper extends the cognitive dissonance theory and contrast theory to the brand alliance context. Survey responses from 1,510 consumers, each having had purchase experiences with one of 18 brand alliances, were used to test hypotheses.

The authors identify which of the two theories provides greater explanatory power under varying conditions. Further, they find an intriguing host effect. That is, consumers tend to hold host partners more responsible for both highly satisfying and less‐than‐highly satisfying alliance encounters.

The authors' findings help firms better understand how consumers respond to alliance encounters. Practical insights include distinct advice for host versus guest partners in partner selection and resource commitments to alliance platforms.

This paper is among the first to investigate consumer reactions to actual alliance encounters, especially in market rather than experimental conditions. Further, whereas the literature has focused on positive consumer experiences with brand alliances, the authors' research includes both highly satisfying and less‐than‐highly satisfying alliance experiences and thus they uniquely report on the full range of alliance encounter outcomes.

The purpose of this paper is to provide a review of major historical developments in agricultural finance, with particular emphasis on agricultural credit. It reviews the development of Raiffeisen and related banks that emerged in Germany and Europe throughout the nineteenth century and how the cooperative banking system made its way into the banking system of the USA in the early twentieth century. The paper emphasizes the role of the state in the developing of agricultural credit, especially with respect to farm mortgages, securitization, and bond structures.

This paper presents a historical synthesis of historical literature on agricultural credit.

This paper shows the direct linkage between the developments in Raiffeisen credit cooperatives and the Farm Credit System (FCS) and details the emergence of the land banks, farm credit banks, agricultural bonds and the role of joint-stock banks in agricultural credit policy.

In total, 2016 marks the 100th anniversary of the passing of the 1916 Federal Farm Loan Act which set in motion the USs’ first Government Sponsored Enterprise and catalyzed the formation of the FCS as it operates today to provide credit to farmers and rural communities on a cooperative basis. Although there are a few wonderful books written on certain aspects of the FCS the story of how the FCS was initiated and the many struggles it faced up to the 1933 Act has not been told often enough. This paper tells the story of the evolution of agricultural credit that ultimately led to the formation of the FCS.

Today’s financial service institutions have shifted from traditional face‐to‐face selling to direct marketing practices, including phone, mail, and computer technology. Consumer’s preferences toward face‐to‐face interaction versus direct means are empirically examined across 15 different financial products and services. A significant variation was found in consumer preferences across different financial products and services, and the profiles of consumers are developed based on their preferences. Implications are drawn for developing customer‐oriented marketing strategies, acknowledging customers’ differences in their preferences toward human interaction and self‐service technology.

We construct an embankment on a historical flow. The intention is to design a durable structure for any country seeking to pull itself out of the current recession.

Thomas Piketty’s classic is subjected to a close and novel scrutiny. The history is downplayed and the nascent macroeconomics fleshed out and extended.

A distinction must be made between rentier and productive interests and credit directed to the latter. Both private and public investments are essential. Socially designed projects must be originated and supported through State Development Banks.

Individual components have long been in existence. Green technology, social funding and the like are increasing in importance. However, they have not been embraced in a simple overarching model.

We offer a rationale for the government bond. Finance is introduced rigorously into the macroeconomic framework. The basis, though, is employment.

Current models of transaction credit in the e-commerce network face many problems, such as the one-sided measurement, low accuracy and insufficient anti-aggression solutions. This paper aims to address these problems by studying the transaction credit problem in the crowd transaction network.

This study divides the transaction credit into two parts, direct transaction credit and recommended transaction credit, and it proposes a model based on the crowd transaction network. The direct transaction credit comprehensively includes various factors influencing the transaction credit, including transaction evaluation, transaction time, transaction status, transaction amount and transaction times. The recommendation transaction credit introduces two types of recommendation nodes and constructs the recommendation credibility for each type. This paper also proposes a “buyer + circle of friends” method to store and update the transaction credit data.

The simulation results show that this model is superior with high accuracy and anti-aggression.

The direct transaction credit improves the accuracy of the transaction credit data. The recommendation transaction credit strengthens the anti-aggression of the transaction credit data. In addition, the “buyer + circle of friends” method fully uses the computing of the storage ability of the internet, and it also solves the failure problem of using a single node.

In the presence of credit rationing the poor are unable to exploit growth‐promoting opportunities. Using data gathered from a household survey on North China Plain, the purpose of this paper is to find pervasive rationing in the highly regulated formal credit market in rural China. The subsidized credit policies favor local elites instead of the targeted poor strata and earmarked credit programs are less effective. By jointly estimating credit rationing in both the formal and informal sectors, this paper elaborates on the fragmented rural credit market in China where different borrower segments are systematically sorted out across different loan types. Non‐targeted credit programs cannot address income redistribution or sustainable poverty reduction in the presence of such skewed equality and equity.

The basis of this study is a multi‐topic household survey data on rural households in the North China Plain, with 337 rural households being randomly sampled out of five purposely selected counties. The particular objectives are to identify the determinants of credit rationing in both formal and informal sectors, to show the extent of credit rationing by using Probit model, to explore the substitutability of institutional and informal lending by using bivariate probit specification.

First, there exists pervasive rationing in the highly regulated formal credit market in rural China. Second, the subsidized credit policies favor local elites, instead of the targeted poor strata; and the earmarked credit programs are less effective. Third, informal credits, in a form of reciprocal arrangement, are weak substitutes for institutional loans. Different segments of borrowers are systematically sorted out across different loan types; the rural credit market is fragmented. Fourth, government‐led credit programs are not effective in promoting agricultural investments; credits of rural non‐farm activities facilitate agricultural transformation.

Since 2004, the policymakers in China initiated a set of policies towards promoting agricultural and rural development to spur the rural economy and ease tensions in rural area. Credit policies, believed often to be efficient and guided tools to provide financing to investors, gained a great deal of appeal. Given the widely existing failure of government‐driven rural credit programs in many other developing countries, how the interventions affect the rural economy in China should be investigated. However, little has been done to explore the interventions on smallholder farmers and the existing evidence is therefore pieced and anecdotal. This paper aims to fill that gap.

The aim of the study is to attempt to analyze the trends and patterns of institutional credit flow, deployed by the CBs, SCBs and RRBs, for production and investment purposes in agriculture and allied activities in India in the light of banking sector reforms initiated in the early 1990s.

The study is based on secondary data collected from the Handbook of Statistics of Indian Economy, 2009‐2010 published by the Reserve Bank of India, Agricultural Statistics at a Glance, Economic Survey of India, etc. The data relating to institutional credit at the all India level were collected for 1971‐1972 to 2007‐2008. The period from 1971‐1972 to 1980‐1981 is considered as the beginning of multi‐agency approach and bank branch expansion, from 1981‐1982 to 1990‐1991 is regarded as the pre‐reform period, from 1991‐1992 to 2007‐2008, as the post‐reform period. In order to examine the extent of institutional credit flow for development of agriculture and allied activities, the indictors such as the average institutional credit per hectare cultivated area and as percentage of agricultural GDP were estimated, besides the CAGR during different periods.

The study found that the annual growth rate of total institutional credit for agriculture and allied activities was much higher during the reform period as compared to that of pre‐reform period. The average institutional credit per hectare and as a percentage of agricultural GDP has gone up significantly during the reform regime. The RRBs followed by the SCBs registered highest growth rates of production credit as compared to that of CBs during the entire period; it was higher during the reform than the pre‐reform period. The growth rate of investment credit was highest for SCBs followed by the RRBs as against the CBs during the reform period. It has been observed that the CBs have lost their historical prime position in provision of agricultural credit. The growth pattern of production as well as investment credit constituted what can be described as the “U‐shaped” curve. This implies that the bulk of the increase in institutional credit for agriculture and allied activities during the reform period was attributed to the banking sector reforms initiated in the early 1990s.

The data on institutional credit provided by the SCARDBs and PCARDBs were not included under the co‐operative sector prior to 1999‐2000, and it covered credit by only PACs. Hence, the temporal comparability of data on institutional credit under the co‐operative sector for the period 1998‐1999 to 2007‐2008 with that of earlier periods may be erroneous.

Adequate and timely inflow of both production and investment credit for development of agriculture and allied activities through further reforms in the banking sector would go a long way in sustained growth of agriculture and food security for a great majority of the rural masses in India.

The study establishes the “U‐shaped” curve for the growth pattern of institutional credit for development of agriculture and allied activities in India. This follows that the increase in the growth rates of institutional credit during 1991‐1992 to 2007‐2008 was largely due to the banking sector reforms.