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Top performing small banks: making money the old-fashioned way

Author

Listed:
  • Benton E. Gup
  • John R. Walter

Abstract

Although the profitability of U.S. small banks shrank in the 1980s, two percent of these banks remained highly profitable by emphasizing basic banking, namely acquiring low-cost funds and making low-risk investments.

Suggested Citation

  • Benton E. Gup & John R. Walter, 1989. "Top performing small banks: making money the old-fashioned way," Economic Review, Federal Reserve Bank of Richmond, vol. 75(Nov), pages 23-35.
    • Handle: RePEc:fip:fedrer:y:1989:i:nov:p:23-35:n:v.75no.6
    as

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    File URL: https://fraser.stlouisfed.org/files/docs/publications/frbrichreview/rev_frbrich198911.pdf
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    References listed on IDEAS

    as
    1. Robert T. Clair, 1987. "Financial strategies of top-performance banks in the eleventh district," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Jan, pages 1-14.
    2. Mueller,Dennis C., 2009. "Profits in the Long Run," Cambridge Books, Cambridge University Press, number 9780521101592, October.
    3. Paul R. Watro, 1989. "Have the characteristics of high-earning banks changed? Evidence from Ohio," Economic Commentary, Federal Reserve Bank of Cleveland, issue Sep.
    4. David L. Mengle & John R. Walter, 1987. "A review of bank performance in the Fifth district, 1986," Economic Review, Federal Reserve Bank of Richmond, vol. 73(Jul), pages 29-37.
    5. Gary Whalen, 1987. "Concentration and profitability in non-MSA banking markets," Economic Review, Federal Reserve Bank of Cleveland, issue Q I, pages 2-9.
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    Cited by:

    1. Hasan, Iftekhar & Hunter, William Curt & MathisIII, Roswell E., 2000. "Promotional Expenditures, Market Competition, and Thrift Behavior," Journal of Business Research, Elsevier, vol. 50(2), pages 177-184, November.
    2. Bostic, Raphael W. & Robinson, Breck L., 2004. "The impact of CRA agreements on community banks," Journal of Banking & Finance, Elsevier, vol. 28(12), pages 3069-3095, December.
    3. Hasan, Iftekhar & Hasan, Tanweer & Pickeral, Robert, 1995. "Are mortgage specialized thrifts viable? an empirical investigation," International Review of Economics & Finance, Elsevier, vol. 4(2), pages 189-204.
    4. Douglas G. Duncan & George B. Wallace, 1992. "National And Regional Persistence Of High Performance Agricultural Banks In The 1980s," The Review of Regional Studies, Southern Regional Science Association, vol. 22(1), pages 89-103, Summer.
    5. Gary C. Zimmerman, 1996. "Factors influencing community bank performance in California," Economic Review, Federal Reserve Bank of San Francisco, pages 26-40.

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    Keywords

    Banks and banking; Bank size;

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