Loan Mix Characteristics on Bank Profitability

Authors

Alexandra Bechtel '14, Illinois Wesleyan UniversityFollow

Abstract

This study will examine the states within the Chicago-based Seventh Federal Reserve Bank District: Illinois, Indiana, Iowa, Michigan, and Wisconsin. Studying the Seventh Federal Reserve Bank states is interesting because while they are highly similar in terms of geographical closeness, the health of each states’ banking sector has varied tremendously. For example, in a study comparing attributes like customer satisfaction, stability, availability of high interest rates, and size of banking community of each state in the U.S., Iowa comes in at fourteenth, Wisconsin ranks at twenty-first, and Illinois falls all the way to dead last (“Best and Worst States”, 2013). This study hopes to explore the health of the banking industry within each of the five states during periods of economic expansion and contraction to see the extent to which selected variables contribute to a contracting economic state.

Recommended Citation

Bechtel, Alexandra '14 (2014) "Loan Mix Characteristics on Bank Profitability," The Park Place Economist: Vol. 22
Available at: https://digitalcommons.iwu.edu/parkplace/vol22/iss1/11