Is the Savings and Loan Industry Facing Extinction?

The Secured Lender, Vol. 47, May/June 1991

Posted: 27 Mar 1999

See all articles by Stephen F. Borde

Stephen F. Borde

University of Central Florida - College of Business Administration

Abstract

This article discusses the S&L crisis. Proposed solutions are discussed in the context of the industry as it currently stands. With a somewhat similar liability structure to that of banks (mainly short-term deposits), the asset structure of S&Ls is quite different. Whereas banks assets consist of short-term loans, S&L assets consist largely of long-term loans, such as home ownership mortgages. Therefore, in the absence of adequate hedging measures, S&Ls are more vulnerable to interest rate risk, which can lead to lower profits when interest rates rise.

JEL Classification: G00, G20, G21, G28, G29

Suggested Citation

Borde, Stephen F., Is the Savings and Loan Industry Facing Extinction?. The Secured Lender, Vol. 47, May/June 1991, Available at SSRN: https://ssrn.com/abstract=151018

Stephen F. Borde (Contact Author)

University of Central Florida - College of Business Administration ( email )

PO Box 161400
Orlando, FL 32816
United States
407-823-2977 (Phone)
407-823-6676 (Fax)

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