Two essays on depository institution deregulation
type: CreativeWork
description: The first essay develops two sets of linear models of a depository institution under various competitive assumptions about deposit and loan markets. To evade an explicit interest rate ceiling, intermediaries pay implicit interest on deposits. The models show that the total rate under ceilings will be greater (less) than the explicit rate paid without ceilings when depositors value implicit interest more (less) than the same level of explicit interest at each deposit level. The models also show that a small simultaneous increase in the ceiling rate and competition will raise optimal profits when depositors heavily favor explicit interest.
abstract: The first essay develops two sets of linear models of a depository institution under various competitive assumptions about deposit and loan markets. To evade an explicit interest rate ceiling, intermediaries pay implicit interest on deposits. The models show that the total rate under ceilings will be greater (less) than the explicit rate paid without ceilings when depositors value implicit interest more (less) than the same level of explicit interest at each deposit level. The models also show that a small simultaneous increase in the ceiling rate and competition will raise optimal profits when depositors heavily favor explicit interest.
author: Barger, Peter Stewart
language: eng
keywords: Economics, Finance
date published: 2011-05-07T14:08:12Z
date modified: 2026-07-22T22:25:21Z
provider: University of Illinois - Urbana-Champaign
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Illinois at Urbana-Champaign

PropertyValue
property ID: Handle
value: http://hdl.handle.net/2142/23271