Asset management in a commercial banking environment may be viewed as a process of resource allocation. The resources of a bank consist of the funds made available to the bank by its depositors, creditors and shareholders. These funds may be allocated among a variety of earning and non-earning assets. In carrying out this allocation, management must recognize and reconcile the various and often conflicting objectives and requirements of its depositors, its shareholders and the public agencies which regulate its activities. Given these multiple requirements and objectives the senior management of the bank must determine an allocation plan that will provide maximum safety and adequate liquidity for its depositors and an acceptable return for its shareholders. This thesis attempts to demonstrate how bank management can use a mathematical programming model to assist them in formulating short, intermediate and long range plans for the bank's asset management activities. It is shown that such a model is capable of dealing with the multiple goals which represent the bank's objectives and obligations and that the model can be formulated to incorporate the complex interdependencies which exist among the various asset management activities. The solution to the model will represent the most satisfactory course of action available to the bank in terms of its organizational goals. / Business, Sauder School of / Graduate

In conjunction with the recent interest in the liquidity preferences of commercial banks, which is itself part of a new supply theory of money, this thesis investigates the reserve behaviour of Canadian commercial banks from 1920-1939. Several models of bank reserve behaviour are presented including the one to be tested in this thesis. This model differs from the others in that it will be tested with monthly data on individual banks (and hence can explain differences among banks as to the holding of reserves) whereas the others were tested with annual data for a group of banks or a banking system. Since there was no required reserve in Canada prior to March, 1935, there was also no definition of what constituted reserves. This problem had to be investigated before any reserve ratios could be calculated. After calculating some reserve ratios, several interesting observations can be made. The hypothesis that Canadian, commercial banks adhered to a ten per cent required reserve ratio through a gentlemen's agreement within the Canadian Bankers Association was clearly refuted. Also the effect of the establishment of the .Bank of Canada on reserve holdings was noticed. Furthermore, the evidence cast some doubt on the conclusions of George Morrison in his book, Liquidity Preferences of Commercial Banks. The model presented previously was then tested both with monthly data for individual banks and with monthly data for the banking system as a whole. The tests using monthly data for the individual banks indicated the need for further refinement of the model although considering the number of observations and the diversity among banks perhaps the R² was not that bad.. The R² was much improved when monthly data for the banking system was used. This is to be expected as aggregations over banks hides much detail which, thus, does not have to be explained. / Arts, Faculty of / Vancouver School of Economics / Graduate

A variety of both parametric and nonparametric test statistics have been employed in the finance literature for the purpose of conducting hypothesis tests in event studies. This thesis begins by formally deriving the result that these statistics may not follow their conventionally assumed distribution in finite samples and in some cases even asymptotically. Thus, standard event study test statistics can exhibit a statistically significant bias to size in practice, a result which I document extensively. The bias typically arises due to commonly observed stock return traits, including non-normality, which violate basic assumptions underlying the event study test statistics. In this thesis, I develop an unbiased and powerful alternative: conventional test statistics are normalized in a straightforward manner, then their distribution is estimated using the bootstrap. This bootstrap approach allows researchers to conduct powerful and unbiased event study inference. I adopt the approach in an event study which makes use of a unique data set of failed-bank acquirers in the United States. By employing the bootstrap approach, instead of more conventional and potentially misleading event study techniques, I overturn the past finding of significant gains to failed-bank acquirers. This casts doubt on the common belief that the federal deposit insurance agency's failed-bank auction procedures over-subsidize the acquisition of failed banks. / Business, Sauder School of / Graduate

No description available.

No description available.

No description available.

No description available.

This study examines the effect of independent board members on a bank's performance. Roughly 100 banks in the SIC codes of 6020, 6022, 6035, 6036 were used, with data from the year 2003. Several governance variables were also included in this study; they are CEO/Chair duality, management ownership, insider tenure and total assets. P-B, ROA, ROE and ROI measured financial performance. The effect of outside directors was insignificant. However, the results indicated that bank size positively affects how well outsiders on the board monitor the company. Also, this study suggests that management's ownership of the company increases short term performance, while insider tenure decreases it.

published_or_final_version / Asian Studies / Master / Master of Arts

by Lau Kwok-ming, Paul, Ng Wai-ip, Danny. / Abstract also in Chinese / Bibliography: leaves 102-104 / Thesis (M.B.A.)--Chinese University of Hong Kong, 1983