A note on the evidence on alternative models of thebanking firm. A cross section study of commercial loan rates

Myron B. Slovin, Marie Elizabeth Sushka

Research output: Contribution to journalArticle

4 Scopus citations

Abstract

In this paper, the determinants of commercial loan rates are analyzed using cross sectionevidence drawn from a survey of commercial bank lending. The objective is to obtain evidence in order to evaluate whether commercial loan rate behavior is consistent with the implications of three alternative theories of banking behavior and therefore provide evidence about the validity of these theories. In general, the cross section evidence leads to the conclusion that both imperfect competition and risk aversion in a portfolio context are important elements in understanding the pattern of commercial loan rates.

Original languageEnglish (US)
Pages (from-to)99-108
Number of pages10
JournalJournal of Banking and Finance
Volume8
Issue number1
DOIs
StatePublished - Mar 1984
Externally publishedYes

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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