Spatial dependence in the non-performing loans of small Italian cooperative banks

Abstract

LM test description Statistic P-value Anselin (1988) Conditional test for spatial error autocorrelation (H 0 : spatial error autoregressive coefficient equal to zero) 9.66 0.000 Conditional test for spatial lag autocorrelation (H 0 : spatial lag autoregressive coefficient equal to zero) 20.86 0.000 Baltagi et al. (2003) Joint test (H 0 : absence of random effects and spatial autocorrelation) 2843.9 0.000 Marginal test of random effects (H 0 : absence of random effects) 50.32 0.000 Marginal test of spatial autocorrelation (H 0 : absence of spatial autocorrelation) 17.66 0.000 Conditional test of spatial autocorrelation (H 0 : absence of spatial autocorrelation, assuming random effects are non null) 15.42 0.000 Conditional test of random effects (H 0 : absence of random effects, assuming spatial autocorrelation may or may not be equal to 0) 48.82 0.000 Baltagi et al. (2007) Joint test (H 0 : absence of serial or spatial error correlation or random effects) 2976.2 0.000 One-dimensional conditional test (H 0 : absence of spatial error correlation, assuming the existence of both serial correlation and random effects) 22.48 0.000 One-dimensional conditional test (H 0 : absence of serial correlation, assuming the existence of both spatial error correlation and random effects) 436.77 0.000 One-dimensional conditional test (H 0 : absence of random effects, assuming the existence of both serial and spatial error correlation) 117.59 0.000

Effect of Borrower's Socio-Economic Profile on Agribusiness Loans Default Rate in Agricultural Finance Corporation, Mount Kenya Region

“…Respondents reported that it was hard to decline such visits even when they were busy thus disrupting their plans and also tampering with their privacy. These findings were concurred by Algeri [57] who agreed that close proximity in lending enhanced supervised lending and heightened the prospects for training and advice. Carbo-Valverde [62] agreed that closer geographical proximity is associated with decreased ex ante vetting and bank's marginal screening cost.…”

“…Also, Negussie [56] agreed that geographic distance increases the costs of information collection and monitoring. Algeri [57] found that distance affected relationship between the borrower and the lender.…”

Number of Bank Agencies and Bank Credit Supply in Waemu Zone: A Spatial Econometric Approach

“…Empirically, the spatial dependence relationship between geographic diversification and credit supply is the subject of empirical work in both developed and developing countries. Algeri et al (2023) investigate the presence of spatial dependence in the non-performing loan (NPL) ratio of small Italian cooperative banks, over the period 2011-2017. Using spatial econometrics techniques, they demonstrate that spatial and spatio-temporal variables drive bad loans in local banks.…”