TY - JOUR
T1 - Quarter-end effects in banks
T2 - Preferred habitat or window dressing?
AU - Kotomin, Vladimir
AU - Winters, Drew B.
PY - 2006/2
Y1 - 2006/2
N2 - 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.
AB - 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.
KW - Preferred habitat
KW - Window dressing
UR - http://www.scopus.com/inward/record.url?scp=31144459731&partnerID=8YFLogxK
U2 - 10.1007/s10693-005-5108-1
DO - 10.1007/s10693-005-5108-1
M3 - Article
AN - SCOPUS:31144459731
SN - 0920-8550
VL - 29
SP - 61
EP - 82
JO - Journal of Financial Services Research
JF - Journal of Financial Services Research
IS - 1
ER -