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Where Is the Risk? Is Agricultural Banking Really More Difficult than Other Sectors?

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Chapter

Abstract

Banks and other financial institutions have been extremely reluctant to engage in rural finance – and even more so in agricultural finance – for a number of reasons. The remoteness of rural clients coupled with poor rural infrastructure and lack of branch networks imply a high cost of service delivery and, as a result, profitability is assumed to be low.

Keywords

Financial Institution Credit Risk Small Farmer Political Risk Production Risk 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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© The Author(s) 2014

Open Access This chapter is distributed under the terms of the Creative Commons Attribution Noncommercial License, which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.

Authors and Affiliations

  1. 1.Finance in MotionFrankfurtGermany

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