Testing Banking's Rules of Thumb
Magazine of Bank Administration, Vol. 47, No. 2, pp. 38-40, 68-69, February 1971
7 Pages Posted: 26 May 2015 Last revised: 11 Aug 2015
Date Written: August 10, 2015
Abstract
Banking has traditionally relied upon rules of thumb to guide management policy and actions in the absence of appropriate data. The article tests many of these generalizations. The rules were tested from the standpoint of two factors influencing bank operating behavior and performance: Management profitability performance and bank deposit size. More specifically, it was determined whether particular rules of thumb were consistent with relatively high management profitability performance and other rules with large bank size.
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