THE IMPACT OF FHLB ADVANCES ON BANK HOLDING COMPANY LENDING OVER THE CREDIT CYCLE

2018 ◽  
Vol 41 (4) ◽  
pp. 415-443
Author(s):  
Elijah Brewer ◽  
William E. Jackson ◽  
Thomas S. Mondschean
Author(s):  
Eric Haye

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-hyphenate: none;"><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; letter-spacing: -0.15pt;"><span style="font-size: x-small;">The purpose of this article is to explore the impact of internal and external market conditions on bank holding company operating expenses.<span style="mso-spacerun: yes;">&nbsp; </span>An agency problem exists whenever management makes decisions which produce results contrary to shareholder interests.<span style="mso-spacerun: yes;">&nbsp; </span>Factors such as large-block shareholdings, management participation in ownership, product and labor market competition, outsider board participation and ease of market entry are believed to serve as mitigating factors.<span style="mso-spacerun: yes;">&nbsp; </span>Although there is evidence that product and ownership conditions have a significant effect operating expenses and other expenditures deemed to be preferred by management, there is scant evidence on the importance of these factors relative to board composition and entry barrier regulation.<span style="mso-spacerun: yes;">&nbsp; </span>Furthermore, most of the focus has been on relatively large banking institutions.<span style="mso-spacerun: yes;">&nbsp; </span>Employing a sample of small-to-medium banking firms from the 1980s, the results indicate that entry barrier regulation and board composition served as an important source of agency problems for these firms as reflected in the operating expense structure.</span></span><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; letter-spacing: -0.15pt;"></span></p>


1975 ◽  
Vol 48 (2) ◽  
pp. 204 ◽  
Author(s):  
Rodney D. Johnson ◽  
David R. Meinster

1974 ◽  
Vol 29 (4) ◽  
pp. 1344
Author(s):  
Robert R. Dince ◽  
Richard B. Johnson

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