Simulating commercial bank performance under differing loan-deposit relationships /
| Main Author: | |
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| Other Authors: | , , |
| Format: | Thesis Book |
| Language: | English |
| Published: |
1989.
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| Subjects: | |
| Online Access: | ProQuest, Abstract Link to OAKTrust copy |
| Abstract: | Agricultural bank failure rates in the 1980s have been at post-depression highs. Concern has arisen among agricultural economists over the impact of bank failure on availability of credit services and community health. Texas has ranked at the top of the list in the number of failures due to the combined effects of several macroeconomic factors on agriculture, energy and real estate. The primary purpose of this study was to assess the impact that changes in the operating environment of agricultural banks have upon bank performance and survival. To accomplish this objective, a simulation model of the representative agricultural bank was constructed and then tested for responsiveness to differing risk attitudes of bankers, level and allocation of loan-to-deposit feedback and noninterest operating cost level. Model results illustrate decreasing profitability and increasing relative liquidity for risk averse bankers. Further, loan-to-deposit feedback is shown to significantly impact bank performance with increased feedback rates reducing bank funds costs. Finally, a reduction in bank noninterest operating costs directly increased bank profitability as expected. |
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| Item Description: | Typescript (photocopy). Vita. "Major subject: Agricultural Economics." |
| Physical Description: | ix, 172 leaves : illustrations ; 29 cm |
| Bibliography: | Includes bibliographical references. |