Commercial Bank Profits: An Analysis of Variances in Bank Earnings from The Various Sources of Funds

This study examines the factors that affect the profit picture of commercial banks in the United States. Particular emphasis is placed on discovering whether or not the profits earned by commercial banks on government funds are at a great disparity with those profits earned on other sources of funds. The author concludes that banks today do appear to be making more money on government funds than on funds from individuals, partnerships, and corporations; that the latter activity is in effect the managing of liabilities by the least cost path and that government regulations do have a nullifying effect on run away profi