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Bank Performance As The Economy Rebounds, Jonathan A. Scott, George H. Hempel
Bank Performance As The Economy Rebounds, Jonathan A. Scott, George H. Hempel
Historical Working Papers
A new bank environment caused by changing government regulation and newly introduced financial instruments causes bank return rates to be substantially lower than in previous economic recoveries. Bank strategy may involve assuming increased risk.
Bank Performance In The Emerging Recovery: A Changing Risk-Return Environment, Jonathan A. Scott, George H. Hempel
Bank Performance In The Emerging Recovery: A Changing Risk-Return Environment, Jonathan A. Scott, George H. Hempel
Historical Working Papers
The authors argue that loan rates lag behind prime rate during economic recovery and never reach the low limits that might otherwise occur due to changes in the regulatory and market environment. The changes referred to specifically include competition between market components, changes in bankruptcy law, and the introduction of new financial instruments such as money market deposit accounts.