Journal of Commercial Banking and Finance

Publishes theoretical and empirical works on banking and financial management. Includes classroom teaching cases, with instructor's notes on finance or banking. Its primary objective is to expand exchange of ideas and insights that further the understanding of banking and finance. Practitioner oriented.

Articles

Vol. 5, No. 1-2, Annual

The Influence of Growth Strategy on Profits in Credit Unions
ABSTRACT The paper presents an empirical examination of the relationship of an organization's growth strategy to performance. The study includes a sample of chief executive officers in the financial services sector, specifically credit unions. In...
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International Banking and Large Community Banks: A Preliminary Look
ABSTRACT Banking has had a rich and illustrious history. Much of its development can be related to the banks' ability to provide international banking services. This paper looks at the trends and current state of the U.S. banking industry, specifically...
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The Community Reinvestment Act and Efficient Markets Debate: A Review of Theory
ABSTRACT This paper crosses two existing lines of research. On the one hand, there is the literature on the community reinvestment act (CRA) and on the other there is the literature on the efficient markets hypothesis (EMH). The paper, therefore,...
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The Unbanked Hispanic Community: Implications for the Banking Sector
ABSTRACT Recent discussions on the unbanked Hispanic community refer to the untapped deposit potential that this community has to offer to the banking system, but little is known about the magnitude of deposit funds that the non-banked group could...
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An Empirical Investigation of Street Registration for Banking
ABSTRACT An empirical study was done to illustrate the dilemma that is faced by banks as a result of securities issued in nominee names. In addition, the study focuses on the level of awareness and concern of banks regarding street registration....
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Operating Performance of the U.S. Commercial Banks after IPOS: An Empirical Investigation
ABSTRACT This study examines the effects of ownership structure on operating performance within the financial institutions industry by examining 216 bank initial public offerings between 1992 and 1998. Various financial ratios are utilized to...
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Comparing Credit Unions with Commercial Banks: Implications for Public Policy
ABSTRACT Credit unions continue to serve an important purpose in US economy by providing financial services to low- and moderate-income individuals based on common bond of membership. However, since the passage of the Credit Union Membership Access...
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Community Reinvestment Act: Review of Empirical Evidence
ABSTRACT This paper reviews the empirical evidence on the community reinvestment act (CRA) in light of three major different perspectives: (1) The lending market is efficient, (2) The lending market is inefficient due to illegal "discrimination,"...
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Vol. 4, No. 1-2, Annual

A Dazzling Array of Credit Card Fees: Evidence of an Industry in Transition
ABSTRACT With continuing pressures to show profits and with competition for customers becoming more intense, credit-card issuers are increasingly turning to higher fees rather than higher interest rates as a means for enhancing profitability. After...
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Bank Loans and Corporate Debt Ownership: Some Evidence from an Economy in Transition
ABSTRACT Recent empirical work documents the systematic link between "bank debt" use and firm-level proxies for an attenuated informational environment and monitoring need. In much of this research, however, practical considerations of data availability...
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A Critical Review on Analysts' Earnings Forecasts
ABSTRACT Unlike prior review papers on analysts' earnings forecasts, this study focuses on limitations of analysts' forecasts as a predictor of future earnings and a proxy for the market's earnings expectations. Although analysts provide more accurate...
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The Evolution of Derivative Use by Community Banks from 1995-2003
ABSTRACT We analyze the use of interest rate derivatives by community banks from 1995 to 2003. We can be reasonably sure that community banks' use of derivative securities is purely as end users of the products. It is commonly known that derivative...
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Why Customers Choose Community Banks: An Empirical Study
ABSTRACT This paper examines the reasons customers choose community banks and the perceptions of community bank chief executive officers as to why customers might choose a community bank. Additionally, the paper examines what services and facilities...
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The Impact of FAS 133, Accounting for Derivatives and Hedging, on Financial Institution Returns
ABSTRACT The Financial Accounting Standards Board (FASB) issued a new accounting standard, Statement No. 133 (FAS 133), on June 16, 1998. FAS 133 requires companies to put derivative financial instruments on the balance sheet as assets or liabilities...
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An Aggregate Investigation of the Demand for Home Equity Credit
ABSTRACT Home equity credit has continued to grow in importance to both financial institutions and consumers. Financial institutions find home equity loans attractive because of low delinquency and foreclosure rates and consumers are drawn to home...
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Vol. 3, No. 1-2, Annual

Commercial Banks' Privatization and Creation of Private Banks in Uzbekistan as the Necessary Factor to Restructure the Banking System
ABSTRACT Privatization via attracting a foreign capital is determined as one of the main directions to restructure the banking system in Uzbekistan. The main objective of reorganization of the financial and banking sectors is to create a new class...
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The Choice of Private versus Public Debt in an Emerging Economy: Does Information Asymmetry Play a Role?
ABSTRACT Recent theoretical and empirical work points to the unique role played by private debt in corporate capital structure. However, extant research that documents the significance of the sources of corporate debt focuses almost exclusively...
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Services Marketing: Are Perceptions of Service Quality Predictors of Behavioral Intentions? the Banking Industry Perspective
ABSTRACT This research was conducted to verify the influence of perceived service quality on behavioral intentions of customers of Malaysia banking services. The results provide support for association between perceived service quality dimensions...
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Mortgage Backed Securitization: When Does It Work?
ABSTRACT The success of mortgage backed securitization in the US as a generator of housing finance is unquestioned. Learning from this experience, since the mid-1980s, securitization was introduced into an increasing number of national markets,...
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Portfolio Value Estimates Using Mass Appraisals and Portfolio Confidence Intervals
ABSTRACT This paper compares various procedures for estimating confidence intervals for the value of a portfolio of assets when point estimates of individual asset values are estimated by multiple regression. The portfolios of interest in this study...
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The Impact of Bank Asset Composition on Profitability
ABSTRACT The purpose of this paper is to investigate the impact of bank asset composition on accounting returns. Specifically, the paper focuses on the contribution of securities, commercial and industrial loans, and real estate loans to bank return...
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The Behavior of Credit Card Interest Rates during the Decline in Other Interest-Rate Markets
ABSTRACT The three-year period beginning in December 2000 saw historic declines in the interest rates in most financial markets including 15 reductions in the key rates established by the Federal Reserve. However, interest rates in the credit-card...
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Do Capital-to-Asset Ratios Affect Credit Union Interest Rates?
ABSTRACT This study builds on a previous study by the authors by adding the capital-to-asset ratio to a model that explains variation in used-vehicle loan rates. Because credit unions pay interest on deposits but can use their capital at zero cost,...
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Industry Characteristics and the Information Content of Debt Downgrades
ABSTRACT This paper extends the existing research on the information content of bond rating changes by considering the industry-wide impact of debt downgrades. In particular, it examines the role of industry-level characteristics in explaining the...
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The Contribution of Banks' Annual Report Writing Quality to Investor Decision-Making
ABSTRACT This project investigated reader responses to excerpts from banks' annual reports. In particular, readers were asked to evaluate the writing quality of the excerpts. Based solely on their evaluations of the annual reports, readers were...
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Vol. 2, Annual

Equity Ownership and Thrift Failures during the S&L Crisis (1)
ABSTRACT We use the crisis within the savings and loan industry during the late 1980s and early 1990s to examine the role of equity ownership as a mechanism for resolving the agency conflict between managers and shareholders. The analysis explores...
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Do Efficient Institutions Score Well Using Ratio Analysis? an Examination of Commercial Banks in the 1990s
ABSTRACT Commercial banks operating in today's economic system are a far cry from the financial institutions of earlier decades. The traditional definition of a bank as defined by Rose (2002) is "a financial intermediary accepting deposits and granting...
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Restructuring Commercial Banks in the Republic of Uzbekistan
ABSTRACT For the last seven decades as a result of expanding the usage of financial instruments and globalization of world financial and banking systems, the world practice has faced new problems regarding appropriate commercial banks' regulation...
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Insider Trading around Bank Failures
ABSTRACT In this paper we examine insider trading around bank failures. We examine insider trading around four major bank failures that took place in the 1980's. The four failures that are examined are Continental Illinois National Bank and Trust...
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Consolidation in the Banking Industry and the Viability of Small Commercial Banks: X-Efficiency and Bank Size
ABSTRACT The relaxation of geographic restrictions on the branching activities of U. S. commercial banks has resulted in numerous predictions about the future composition of the industry. Most predict some degree of consolidation, reducing the total...
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Developing a Comprehensive Performance Measurement System in the Banking Industry: An Analytic Hierarchy Approach
ABSTRACT Developing a meaningful performance measurement system in a service organization such as a commercial bank is a challenging task for management because we must focus on results rather than activities because their outputs are hard to define....
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Vol. 1, Annual

Does Planning Make a Bank More Effective?
ABSTRACT The planning process needs to be reduced to a reasonable number of components to be manageable and effective. At the same time, it must be a thorough and thought-provoking session that evaluates all of the major components that might reasonably...
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Stock Splits and Abnormal Returns in an Overactive Internet Market Segment
ABSTRACT Theoretical arguments about the financial relevance of dividend policy reveal that in perfect and costless markets, dividend policy is irrelevant. The introduction of market imperfections into these arguments presents grounds for the relevance...
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Consumer Debt: Who's at Risk? Evidence from the 1998 Survey of Consumer Finances
ABSTRACT This article uses data from the 1998 Survey of Consumer Finances to examine which types of households carry higher relative levels of debt and may thus be at greater risk in an economic downturn. Results reveal that lower net worth households...
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Innovations in Bank Service Marketing or How to Market a Bank
ABSTRACT The banking industry has changed radically in the past few years and continues to change rapidly. The projection for banking in the foreseeable future make the traditional views of banking obsolete. Individuals have shifted their personal...
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The Applications of the Fibonacci Sequence and Elliott Wave Theory in Predicting the Security Price Movements: A Survey
ABSTRACT This paper provides a survey of findings describing the use of Fibonacci series (a mathematical sequence that consists of two numbers in the sequence being added together to produce the third number of the series) and its underlying principles...
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Competition and Market Friction: Evidence from Australian Mortgage Markets
ABSTRACT This paper examines the nature and extent of price inertia in the Australian variable rate mortgage market, through an examination of the size, frequency and duration of variable mortgage rate changes, and the analysis of elasticities....
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Cluster Analysis of the Financial Characteristics of Depository Institution Merger Participants and the Resulting Wealth Effects
ABSTRACT Cluster analysis is used to analyze the mergers of depository institutions, drawing on previous work in the non-financial sector. The majority of merger studies focus on single motivation factors or limited participant characteristics and...
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