Tracking down elusive economies of scale

Article Abstract:

Economies of scale in banking does not necessarily result in lower operational and transaction costs. In some branch mergers, the efficiency level is affected by interest costs, reengineering of credit functions, level of customer service, threshhold economies and the need for outsourcing. However, processing functions of a bank benefits from such economies because of fixed costs, standardization and price sensitivity. For the optimal effects of consolidation, the impact should be assessed from the perspective of the whole business.

Bank mergers, Economies of scale

---

Monitoring loan quality via checking account analysis

Article Abstract:

Analysis of loan quality is conducted using information derived from checking accounts. The theory implies that due to asymmetric information, small loans are advantageous for banks. Results indicate that large banks are more liquid and depend on economies of sclae for profitability. Lending is very competitive as large banks are disadvantaged from the inefficiencies of small loans. Small banks, on the other hand, are dependent on deposit insurance and are typically illiquid.

Usage, Loans, Information theory, Checking accounts

---

Managing concentration risk in loan portfolios

Article Abstract:

A four-point guide in managing concentration risk in loan portfolios to reduce severe loan losses, regarded as the number one problem faced by the banking industry today, is presented. If properly implemented, this four-step approach to be followed in developing a strategic plan will help ease the problem and in the process, greatly enhance an institution's long-term asset efficiency.

Methods, Portfolio management, Bank loans

Similar abstracts:

• Abstracts: The cost of learning's pressure on earnings. Inflation hits education. Hot-line to the dealing floor
• Abstracts: Talking sense. Starting an open relationship. Peter Shakeshaft of Drambuie Group
• Abstracts: A corporate-wide ergonomics programme: implementation and evaluation. An exponential model of isometric muscular fatigue as a function of age and muscle groups
• Abstracts: The role of executive team actions in shaping dominant designs: towards the strategic shaping of technological progress. part 2
• Abstracts: Shrinkage and psychophysical load ratings in self-paced and force-paced lifting work and during recovery. Effects of load carriage on heart rate, blood pressure and energy expenditure in children

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.