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Implications of Corporate Capital Structure Theory for Banking Institutions / Yair E. Orgler, Robert A. Taggart, Jr..

NBER Working papers Available online

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Format:
Book
Author/Creator:
Orgler, Yair E.
Contributor:
National Bureau of Economic Research.
Taggart, Robert A, Jr.
Series:
Working Paper Series (National Bureau of Economic Research) no. w0737.
NBER working paper series no. w0737
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1981.
Summary:
This paper applies some recent advances in corporate capital structure theory to the determination of optimal capital in banking. The effects of corporate and personal taxes, government regulation, the technology of producing deposit services and the costs of bankruptcy and agency problems are all discussed in the context of the U.S. commercial banking system. The analysis suggests explanations for why commercial banks tend to have relatively less capital than nonfinancial firms, why commercial bank leverage has tended to increase over time and why large banks tend to have relatively less capital than small banks.
Notes:
Print version record
August 1981.

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