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Title:Short-Run Borrowing Behavior of Large Commercial Banks
Author(s):Stellaccio, Joseph Louis
Department / Program:Finance
Degree Granting Institution:University of Illinois at Urbana-Champaign
Subject(s):Economics, Finance
Abstract:This study examines the relative importance of the need and profit motives as determinants of short-run bank borrowing behavior.
A model is developed which accounts for the funds secured from the sources made available by liability management; specifically: borrowing from the Federal Reserve, federal funds, certificates of deposit, eurodollars, as well as the traditional sale of treasury bills.
Five equations are developed, each including the proxies developed for need and profit. Each equation also incorporates the alternate sources which are acceptable substitutes for each sourece.
The equations are estimated in two ways: woth ordinary least-squares and two-stage least-squares. The results, which are similar with each method, suggest need, and not profit considerations, play the dominate role in the short-run borrowing decision. The better performance of the model with two-stage least squares supports the hypothesis that the borrowing decision is made by simultaneously considering both need and profit and all available sources.
Issue Date:1980
Description:126 p.
Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 1980.
Other Identifier(s):(UMI)AAI8108675
Date Available in IDEALS:2014-12-14
Date Deposited:1980

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