Costs of Agricultural Credit in the Philippines: The Short-run Effects of Interest Rate Deregulation

What are the effects of interest rate deregulation in the Philippine agricultural credit? This study attempts to answer this question by focusing on the institutional costs of lending to agriculture and the immediate effects of deregulation on these various costs. The frames of reference utilized in the analysis are the costs of lending to non-agricultural sectors and similar studies done in other countries. Bank’s return from lending activities and cross-country comparisons of lending costs are also discussed.