Quarter-end effects in banks: Preferred habitat or window dressing?

Vladimir Kotomin, Drew B. Winters

Research output: Contribution to journalArticlepeer-review

17 Scopus citations


Allen and Saunders [Allen, A., and A. Saunders. "Bank Window Dressing: Theory and Evidence." Journal of Banking and Finance 16 (1992), 583-623.] document abnormal behavior of bank assets and liabilities at the turn-of-the-quarter and attribute it to window dressing by banks. Using different methods we re-visit bank turn-of-the-quarter balance sheet activity. We also examine quarter-end changes in the effective fed funds rates and fed funds rate standard deviations. We confirm the presence of turn-of-the-quarter activity on bank balance sheets and in the fed funds market. However, we conclude that the turn-of-the-quarter effects are more consistent with customer preferred habitats than window dressing.

Original languageEnglish
Pages (from-to)61-82
Number of pages22
JournalJournal of Financial Services Research
Issue number1
StatePublished - Feb 2006


  • Preferred habitat
  • Window dressing


Dive into the research topics of 'Quarter-end effects in banks: Preferred habitat or window dressing?'. Together they form a unique fingerprint.

Cite this