Hostname: page-component-586b7cd67f-tf8b9 Total loading time: 0 Render date: 2024-11-29T19:02:07.745Z Has data issue: false hasContentIssue false
  • English
  • Français

The Cost of Bank Loans

Published online by Cambridge University Press:  19 October 2009

Bernell K. Stone
Get access Rights & Permissions [Opens in a new window]

Extract

The interdependence of loan cost and tangible bank activity is an aspect of the cost of bank debt that has not been treated in the literature. Understanding this interdependence is important for banks in pricing their services, especially as banks adopt more flexible pricing policies. This understanding is crucial for a firm in establishing the true cost of bank borrowing, in comparing bank borrowing with other sources of funds, and in evaluating the firm's banks. It is also important for understanding the firm-bank relationship in general and the cost of capital in particular.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 7 , Issue 5 , December 1972 , pp. 2077 - 2086
Copyright
Copyright © School of Business Administration, University of Washington 1972

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

[1]Baxter, N.D., and Shapiro, H.T.. “Compensating Balance Requirements: The Results of a Survey.” Journal of Finance, vol. 19 (September 1964), pp. 483–496.Google Scholar
[2]Calman, Robert E.Linear Programming and Cash Management – Cash Alpha. Cambridge, Mass.: M.I.T. Press, 1968.Google Scholar
[3]Emmer, R.E. “Compensating Balances and the Cost of Loanable Funds.” Journal of Business, vol. 30 (October 1957), pp. 268–275.CrossRefGoogle Scholar
[4]Furniss, James P., and Nadler, Paul S.. “Should Banks Reprice Corporate Services.” Harvard Business Review, June–July 1966, pp. 95–105.Google Scholar
[5]Johnson, Robert W.Financial Management, 3rd ed.Boston, Mass.: Allyn and Bacon, Inc., 1966, chapter 13.Google Scholar
[6]Pogue, Gerald A.; Faucett, Russell B.; and Bussard, Ralph N.. “Cash Management: A Systems Approach.” Industrial Management Review, Winter 1970.Google Scholar
[7]Robichek, A.A., and Myers, Stewart C.. Optimal Financing Decisions. Englewood Cliffs, N.J.: Prentice Hall, Inc., 1965.Google Scholar