Deposit rate ceilings and the market value of banks: the case of France, 1971-1981.: An article from: Journal of Money, Credit & Banking
Book Details
Author(s)Jean Dermine, Pierre Hillion
PublisherOhio State University Press
ISBN / ASINB00091WXCI
ISBN-13978B00091WXC4
AvailabilityAvailable for download now
Sales Rank99,999,999
MarketplaceUnited States 🇺🇸
Description
This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on May 1, 1992. The length of the article is 3404 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the author: An asset-liability analysis of the market value of the equity of banks is a promising method to infer the market valuation factor of various assets and liabilities and also to assess the importance of rents. The model is empirically tested on a sample that contains the French banks listed on a Stock Exchange. Three hypotheses pertaining to the negative effects of corporate taxation and inflation and to the positive effect of regulation on demand deposit rates are examined. The empirical evidence indicates that assets and liabilities subject to taxation are priced at a lower value from 1974 on and that demand deposits provided rents. The simple model developed in this paper can be improved from several standpoints. Future research could, for instance, attempt to distinguish the value of the implicit put option granted by the French deposit insurance system from deposit rate regulation.
From the supplier: The objective of the paper is to develop an empirical methodology to assess the relationship between the market value and the asset-liability structure of banks. A simple bank valuation model is suggested and empirically tested on a sample of French banks. The paper attempts to evaluate the effect of corporate taxation, the rent on deposits subject to interest rate ceilings and the determinants of the 1974 drop in bank's market values. (Printed by permission of the publisher.)
Citation Details
Title: Deposit rate ceilings and the market value of banks: the case of France, 1971-1981.
Author: Jean Dermine
Publication:Journal of Money, Credit & Banking (Refereed)
Date: May 1, 1992
Publisher: Ohio State University Press
Volume: v24 Issue: n2 Page: p184(11)
Distributed by Thomson Gale
From the author: An asset-liability analysis of the market value of the equity of banks is a promising method to infer the market valuation factor of various assets and liabilities and also to assess the importance of rents. The model is empirically tested on a sample that contains the French banks listed on a Stock Exchange. Three hypotheses pertaining to the negative effects of corporate taxation and inflation and to the positive effect of regulation on demand deposit rates are examined. The empirical evidence indicates that assets and liabilities subject to taxation are priced at a lower value from 1974 on and that demand deposits provided rents. The simple model developed in this paper can be improved from several standpoints. Future research could, for instance, attempt to distinguish the value of the implicit put option granted by the French deposit insurance system from deposit rate regulation.
From the supplier: The objective of the paper is to develop an empirical methodology to assess the relationship between the market value and the asset-liability structure of banks. A simple bank valuation model is suggested and empirically tested on a sample of French banks. The paper attempts to evaluate the effect of corporate taxation, the rent on deposits subject to interest rate ceilings and the determinants of the 1974 drop in bank's market values. (Printed by permission of the publisher.)
Citation Details
Title: Deposit rate ceilings and the market value of banks: the case of France, 1971-1981.
Author: Jean Dermine
Publication:Journal of Money, Credit & Banking (Refereed)
Date: May 1, 1992
Publisher: Ohio State University Press
Volume: v24 Issue: n2 Page: p184(11)
Distributed by Thomson Gale
