Tests of the expectations hypothesis: resolving the anomalies when the short-term rate is the federal funds rate

Article Abstract:

Expectations hypothesis is a method for analyzing monetary policy. It implies that market fixes shorter-term rates based on its expectation of the next day's federal funds rate. Similarly, the long-term rate is market's expectation of this short-term rate for holding period along with a risk premium. It is believed that there are two exceptions to these rules. One is when EH is tested using the data for settlement Wednesdays, i.e., the last day of bank reserve maintenance period. The other when EH is tested on the non-borrowed reserves. A study proving that these exceptions are anomalous is presented.

Government expenditures, Economic policy, United States. Federal Reserve Board, Monetary policy

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Factors explaining the interest margin in the banking sectors of the European Union

Article Abstract:

To analyze the interest rate margin in the principal European Union banking sectors the study used a panel of 15,888 observations in the period of 1993 - 2000. The competition caused the fall of margin and this effect is counteracted by the interest rate risk, credit risk and operating costs.

Competition (Economics), Influence, Profit margins

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Determining management behavior in European banking

Article Abstract:

The conduct of management in European savings bank is studied using Garner causality approach and the relationship between loan loss provision, efficiency and capitalization is deduced. An analysis on the management of US banks with respect to European banks is reported.

Commercial Banking, DEPOSITORY INSTITUTIONS, Savings Institutions, Commercial & Savings Banks, Savings banks, Loan loss reserves

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