James L. Freund
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  Matthew T. Billett
Christine E. Blair
Richard A. Brown
Gary S. Fissel
David S. Holland
John P. O'Keefe

by Jennifer L. Eccles and John P. O'Keefe

The authors summarize the environment surrounding New England savings banks in the 1980s, motivations for mutual-to-stock conversion, and the strategies employed by savings banks after conversion. The financial performance of converted savings banks is compared with that of non-converted mutual savings banks in the region, and asset growth rates necessary to produce a sufficient return to investors are estimated. The authors conclude that growth rates required by the New England converted savings banks were high. Because rapid growth can be risky, such fundamental changes in a bank's operating strategy require careful planning and execution in order to be successful.

Recent Cutbacks in Construction Lending at BIF-Insured Depository Institutions
(116kb PDF File - PDF help or hard copy)

by James L. Freund and Maureen C. Crowley

One of the most discussed aspects of the . credit crunch. of the 1990-1992 period was the sharp decline in construction lending at BIF-insured depository institutions. This article examines construction lending during that period. The authors show that the banks that cut back most aggressively had a heavy commitment to such lending in the late 1980s and/or were experiencing general earnings or capital problems. In contrast, various tests designed to capture the influence of real-estate market developments that might affect the demand for construction loans did not help to explain lending patterns.

Recent Developments Affecting Depository Institutions
(296kb PDF File - PDF help or hard copy)

by Benjamin B. Christopher

This regular feature of the FDIC Banking Review contains information on regulatory agency actions, state legislation and regulation, and articles and studies pertinent to banking and deposit insurance issues

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