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Performance Of Minnesota Banks: An Analysis Of Strategic Management Choices

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  • Stensland, Jeffrey
  • Pederson, Glenn D.

Abstract

The success of various bank management strategies is evaluated using data from banks located in Minnesota during 1988-1994. These strategies are identified using a combination of data from financial statements and survey data. Each strategy is evaluated based on its effect on rate of return on assets and rate of return on equity. The study finds that cost containment strategies are relatively more successful than strategies which emphasize the expansion of services. The implications for the future structure of the Minnesota banking industry are discussed.

Suggested Citation

  • Stensland, Jeffrey & Pederson, Glenn D., 1995. "Performance Of Minnesota Banks: An Analysis Of Strategic Management Choices," Staff Papers 14203, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaesp:14203
    DOI: 10.22004/ag.econ.14203
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    References listed on IDEAS

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    1. Gropper, Daniel M, 1991. "An Empirical Investigation of Changes in Scale Economies for the Commercial Banking Firm, 1979-1986," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 23(4), pages 718-727, November.
    2. Kwast, Myron L. & Rose, John T., 1982. "Pricing, operating efficiency, and profitability among large commercial banks," Journal of Banking & Finance, Elsevier, vol. 6(2), pages 233-254, June.
    3. Ellinger, Paul N. & Barry, Peter J., 1990. "Measuring Agricultural Credit Delivery Costs at Commercial Banks," 1990 Regional Committee NC-161, September 24-25, 1990, Kansas City, Missouri 130889, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
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