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Determinants of the Rate of Return on Commercial Bank Assets in the United States, 1959-1998

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  • Cebula, Richard

Abstract

This exploratory note empirically investigates determinants of the annual percentage rate of return on commercial bank assets over the period 1959-1998. The findings indicate that this rate of return has been an increasing function of the average annual interest rate yield on three-year U.S. Treasury notes and the Federal Deposit Insurance Corporation Improvement Act of 1991 and a decreasing function of inflation, the percentage unemployment rate, and the increased competition that began in the 1980’s.

Suggested Citation

  • Cebula, Richard, 2000. "Determinants of the Rate of Return on Commercial Bank Assets in the United States, 1959-1998," MPRA Paper 60006, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:60006
    as

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    References listed on IDEAS

    as
    1. Richard J. Cebula, 1999. "A Current Evaluation of U.S. Banking Legislation: The Federal Deposit Insurance Corporation Improvement Act and Its Performance in Terms of Financial Services Industry Impacts," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 135(II), pages 145-164, June.
    2. anonymous, 1980. "The New Zealand economy - six monthly review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 43, may.
    3. Unknown, 1980. "The Biologic and Economic Assessment of Diallate," Technical Bulletins 157725, United States Department of Agriculture, Economic Research Service.
    4. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    5. anonymous, 1980. "New Zealand economic chronology 1979," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 43, january/f.
    6. James R. Barth, 1991. "The Great Savings and Loan Debacle," Books, American Enterprise Institute, number 918256, September.
    7. Unknown, 1980. "Macroeconomic Linkages to Agricultural Trade," 1980: Macroeconomic Linkages to Agricultural Trade Meeting, December 1980, Tucson, AZ 52378, International Agricultural Trade Research Consortium.
    8. Richard Cebula, 1999. "New evidence on determinants of bank failures in the US," Applied Economics Letters, Taylor & Francis Journals, vol. 6(1), pages 45-47.
    9. Unknown, 1980. "The Biologic and Economic Assessment of Endrin," Technical Bulletins 157728, United States Department of Agriculture, Economic Research Service.
    10. anonymous, 1980. "The New Zealand economy six monthly review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 43, november.
    11. Ira Saltz, 1997. "FDIC Coverage on bank failures: Cointegration analysis using annual data, 1942–91," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(1), pages 71-80, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    rate of return; commercial bank performance; Treasury note yield; competition; unemployment rate;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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