AGRIS record. Record number, US9563486. Titles, A joint experience and statistical approach to cr... more AGRIS record. Record number, US9563486. Titles, A joint experience and statistical approach to credit scoring. Personal Authors, Splett, NS (University of Wisconsin-River Falls.),Barry, PJ,Dixon, BL,Ellinger, PN. Publication Date, (1994). AGRIS Subj. Cat. ...
This study evaluates post-acquisition performance adjustments in banks that have been involved in... more This study evaluates post-acquisition performance adjustments in banks that have been involved in bank acquisitions. Evaluation of post-acquisition changes in productive efficiency, leverage, and portfolio mix are the basis for the analysis. The magnitude and types of performance changes that have occurred in the banking industry are a significant public interest concern due to banks' role in local, regional and national economic developments.Time-series intervention analysis and graphical representation are used to determine the impacts of the acquisitions on various performance measures. Furthermore, the concepts of bank productive efficiency are outlined and the changes in efficiency resulting from bank combinations are evaluated. This empirical study employs a frontier technique to measure individual bank inefficiencies using quarterly data. In addition, the technique outlines the extent to which various input and output relationships can be attributed to inefficiency.The data used for the analysis are taken from four sources. The accounting information for each bank is obtained from the quarterly Call and Income reports from March 1976 through December 1990. The price and acquisition data are obtained from selected issues of Bank Expansion Quarterly. Data on deposit concentrations in rural and urban markets are obtained from Summary of Deposits information provided by the Federal Reserve Bank. Market location of the bank holding company is obtained from Y9 Bank Holding Company data also provided by the Federal Reserve Bank.Results indicate acquired banks tend to exhibit non-positive changes in efficiency, higher loan to deposit ratios, lower capital ratios due to dividend policies, and, in general, increases in both credit risk and financial risk associated with these latter changes. However, many of the adverse changes do not simultaneously occur at acquired banks.U of I OnlyETDs are only available to UIUC Users without author permissio
Consolidation and restructuring of the financial services industry is changing the delivery of cr... more Consolidation and restructuring of the financial services industry is changing the delivery of credit to rural borrowers. A major concern is that continued consolidation may lead to a decline in rural banks and ultimately to a reduction in the availability of credit to farmers, small businesses, and local communities. More than 2,500 bank acquisitions worth approximately $120 billion occurred in the United States between 1979 and 1993. The number of commercial banks declined from 14,496 in 1984 to 10,432 in 1994, a notable decrease of 28%. The passage of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 is likely to accelerate consolidation. In Vision 2000: The Transformation of Banking, Anderson Consulting and the Bank Administration Institute forecast that there will be less
AGRIS record. Record number, US9563486. Titles, A joint experience and statistical approach to cr... more AGRIS record. Record number, US9563486. Titles, A joint experience and statistical approach to credit scoring. Personal Authors, Splett, NS (University of Wisconsin-River Falls.),Barry, PJ,Dixon, BL,Ellinger, PN. Publication Date, (1994). AGRIS Subj. Cat. ...
This study evaluates post-acquisition performance adjustments in banks that have been involved in... more This study evaluates post-acquisition performance adjustments in banks that have been involved in bank acquisitions. Evaluation of post-acquisition changes in productive efficiency, leverage, and portfolio mix are the basis for the analysis. The magnitude and types of performance changes that have occurred in the banking industry are a significant public interest concern due to banks' role in local, regional and national economic developments.Time-series intervention analysis and graphical representation are used to determine the impacts of the acquisitions on various performance measures. Furthermore, the concepts of bank productive efficiency are outlined and the changes in efficiency resulting from bank combinations are evaluated. This empirical study employs a frontier technique to measure individual bank inefficiencies using quarterly data. In addition, the technique outlines the extent to which various input and output relationships can be attributed to inefficiency.The data used for the analysis are taken from four sources. The accounting information for each bank is obtained from the quarterly Call and Income reports from March 1976 through December 1990. The price and acquisition data are obtained from selected issues of Bank Expansion Quarterly. Data on deposit concentrations in rural and urban markets are obtained from Summary of Deposits information provided by the Federal Reserve Bank. Market location of the bank holding company is obtained from Y9 Bank Holding Company data also provided by the Federal Reserve Bank.Results indicate acquired banks tend to exhibit non-positive changes in efficiency, higher loan to deposit ratios, lower capital ratios due to dividend policies, and, in general, increases in both credit risk and financial risk associated with these latter changes. However, many of the adverse changes do not simultaneously occur at acquired banks.U of I OnlyETDs are only available to UIUC Users without author permissio
Consolidation and restructuring of the financial services industry is changing the delivery of cr... more Consolidation and restructuring of the financial services industry is changing the delivery of credit to rural borrowers. A major concern is that continued consolidation may lead to a decline in rural banks and ultimately to a reduction in the availability of credit to farmers, small businesses, and local communities. More than 2,500 bank acquisitions worth approximately $120 billion occurred in the United States between 1979 and 1993. The number of commercial banks declined from 14,496 in 1984 to 10,432 in 1994, a notable decrease of 28%. The passage of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 is likely to accelerate consolidation. In Vision 2000: The Transformation of Banking, Anderson Consulting and the Bank Administration Institute forecast that there will be less
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