Analysis of Financial Performance of Federal Land Banks, Federal Intermediate Credit Banks, Farm Credit Banks, and Related Associations, 1986-89

摘要

The research documents the changes in financial performance of district aggregates of the Farm Credit System (FCS) institutions from midyear 1986 through the end of 1989. The FCS experienced substantial, although unevenly distributed, improvements in most areas. Profitability rose and riskiness fell for the system as a whole, although results were uneven across districts. This improved financial performance arose primarily because interest income per asset dollar rose faster than noninterest operating expenses per asset dollar. However, the system has failed to control its operating expenses relative to its assets. Thus, cost control should be a primary focus of FCS management to attain near-term increases in operating results.