Hostname: page-component-586b7cd67f-gb8f7 Total loading time: 0 Render date: 2024-11-26T07:42:15.672Z Has data issue: false hasContentIssue false

The Impact of Regulatory and Monetary Factors on Bank Loan Charges

Published online by Cambridge University Press:  06 April 2009

Extract

The objective of this study is to determine the impact of money market conditions and a bank's regulatory environment on the interest rates banks charge on their loans. This is accomplished through the analysis of the effect of these impacts, in a multiperiod framework, on a bank's optimal investment and borrowing decisions and the minimum required rate of return on its asset portfolio.

Type
Research Article
Copyright
Copyright © School of Business Administration, University of Washington 1981

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

REFERENCES

[1]Brieman, Leo. “Investment Policies for Expanding Business Optimal in a Long-Run Sense.” Naval Research and Logistics Quarterly, Vol. 7 (12 1960), pp. 647651.Google Scholar
[2]Cass, David, and Stizlitz, Joseph E.. “The Structure of Investor Preferences and Asset Returns, and Separability in Portfolio Selection: A Contribution to the Pure Theory of Mutual Funds.” Journal of Economic Theory, Vol. 2 (1970), pp. 122160.CrossRefGoogle Scholar
[3]Cohen, Kalman J.Dynamic Balance Sheet Management: A Management Science Approach.” Journal of Bank Research, Vol. 2, No. 4 (Winter 1972), pp. 919.Google Scholar
[4]Edwards, Franklin R. “The Banking Competition Controversy.” Studies in Banking Competition and Banking Structure. Washington, D.C.: United States Treasury (01 1966), pp. 303336.Google Scholar
[5]Gordon, Myron J.Dividends, Earnings, and Stock Prices.” Review of Economics and Statistics, Vol. 41 (1958), pp. 99105.Google Scholar
[6]Graham, Benjamin, and Dodd, David L.. Security Analysis. New York: McGraw-Hill (1951).Google Scholar
[7]Hodgmen, Donald R.Commercial Bank Loan and Investment Policy. Urbana, Ill.: University of Illinois Press (1963).Google Scholar
[8]Jacobs, Donald P.Business Loan Costs and Bank Market Structure: An Empirical Estimate of Their Relations. National Bureau of Economic Research, New York: Columbia University Press (1971).Google Scholar
[9]Kane, Edward J., and Malkiel, Burton G.. “Bank Portfolio Allocation, Deposit Variability, and the Availability Doctrine.” Quarterly Journal of Economics, Vol. 79 (02 1965), pp. 133134.Google Scholar
[10]Klein, Michael A.A Theory of the Banking Firm.” Journal of Money, Credit and Banking, Vol. 3 (05 1971), pp. 205218.CrossRefGoogle Scholar
[11]Lintner, John. “Security Prices, Risk, and Maximal Gains from Diversification.” Journal of Finance, Vol. 20, No. 5 (12 1965), pp. 5562.Google Scholar
[12]Modigliani, Franco, and Miller, Merton H.. “Dividend Policy, Growth, and the Valuation of Shares.” Journal of Business, Vol. 34 (10 1961), pp. 411433.Google Scholar
[13]Nemhauser, George L.Dynamic Programming. New York: John Wiley & Sons, Inc. (1966).Google Scholar
[14]Rubenstein, Mark.The Strong Case for the Generalized Logarithmic Utility Model as the Premier Model of Financial Markets.” Journal of Finance, Vol. 31, No. 2 (05 1976), pp. 551571.CrossRefGoogle Scholar
[15]Samuelson, Paul A.Lifetime Portfolio Selection by Dynamic Stochastic Programming.” Review of Economics and Statistics, Vol. 51 (08 1969), pp. 239246.Google Scholar
[16]Sharpe, William F.Portfolio Theory and Capital Markets. New York: McGraw-Hill (1970).Google Scholar
[17]Walter, James E.Dividend Policies and Common Stock Prices.” Journal of Finance, Vol. 11 (03 1956), pp. 2941.Google Scholar
[18]Wood, John H.Commercial Bank Loan and Investment Behavior. London, EnglandJohn Wiley & Sons, Ltd. (1975).Google Scholar