Cost reductions in electronic payments: the roles of consolidation, economies of scale, and technical change
Article Abstract:
Evidence from literature suggests that large economies of scale and technical change brought about by consolidation affect the production costs of electronic payment processing in bank branching. This is particularly true for the Federal Reserve's Fedwire electronic funds transfer operation, which had large scale economies but minimal technical progress between the period 1979 and 1996. These results are in contrast to previous data indicating that scale economies in Fedwire payment processing were insignificant and that the decline in average Fedwire production costs was largely due to technical change.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
The "credit crunch" and the availability of credit to small business
Article Abstract:
Bank size and structure are found to have significant effects on bank loans and real activity in small businesses with big banks differing in responses from small banks. Small banks tend to decrease loan portfolios in response to declines in capital while large banks tend to do the opposite. Real economic activity effects are also found to be more significant with small banks than with large banks with aggregate economic conditions having smaller effects on large firms and large banks than with small firms and small banks.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Bank capital shocks: dynamic effects on securities, loans, and capital
Article Abstract:
Bank capital shocks are analyzed using quarterly statistics. It is shown that not all bank activities reacted uniformly to such abnormal situations. Bank capital and securities adjusted fairly rapidly, taking only a year while liabilities and many other loan types took as much as two to three years before adjustments were made. It is also shown that shocks during the 1990s were far greater in magnitude and speed than those of the 1980s.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Corporate dividend policy: the views of British financial managers. The role of private knowledge in reducing the information wedge: a research note
- Abstracts: US bank industry consolidation continues. Key industry ratios and statistics
- Abstracts: Bank regulation and the credit crunch. Financial innovation, new assets, and the behavior of money demand
- Abstracts: Relative valuation roles of equity book value and net income as a function of financial health. Fair value accounting: effects on banks' earnings volatility, regulatory capital, and value of contractual cash flows
- Abstracts: Comment on Saunders and Wilson. The evolution of an industry: US thrifts in the 1990s