The study focuses on the risk-return relations found in a large set of borrow-back interactions within a single commercial bank. ... Second, commercial banks' decisions are important and involve substantial judgment. ... METHODOLOGY According to the report, the sample included risk and return data from 386 annual borrower evaluations made in the community banking division of Norwest Banks, a super regional bank holding company. The data collected consisted of all the commercial borrowers that received annual credit reviews in the 5 branches that emphasized business borrowers. ... FU...

• Word Count: 730
• Approx Pages: 3
• Grade Level: Undergraduate

Availability of funds to homebuyers no longer depends on local credit conditions and is no longer subject to local ban's potential monopoly powers; with mortgages passs-throughs trading in national markets, mortgages can flow worldwide to wherever demand is greatest. Banks, investment companies, insurance companies, and credit unions are known as financial intermediaries. Bank raises funds by borrowing (taking deposits) and lending that money to other borrowers together. The spread between interest rates paid to depositors and the rates charged to borrowers is the source of the banks ...

• Word Count: 317
• Approx Pages: 1
• Grade Level: Undergraduate