We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
ARE COMPENSATING BALANCE REQUIREMENTS IRRATIONAL?
- Authors
DAVIS, RICHARD G.; GUTTENTAG, JACK M.
- Abstract
The authors respond to an article by Douglas Hellweg entitled "A Note on Compensating Balance Requirements," published in the March 1961 issue. They feel that Hellweg's assertions applied to specific banking situations and were not able to be generalized. The deposit requirements required to garner lower interest rates can actually hurt banks that must abide by deposit regulations regarding the availability of funds. The authors point out that banks do garner benefits should borrowers choose to move their banking to the lending bank to receive lower interest rates on loans.
- Subjects
FORUMS; COMPENSATORY balances; BANK loans; COST effectiveness; BANK accounts; BANK assets
- Publication
Journal of Finance (Wiley-Blackwell), 1962, Vol 17, Issue 1, p121
- ISSN
0022-1082
- Publication type
Article
- DOI
10.1111/j.1540-6261.1962.tb04252.x