Impact of select variables on thrift institution profit rates, 1965-1991

Abstract

Using semi-annual data, this study empirically finds that, over the 1965–91 period, the rate of return on thrift (S&L) assets is an increasing function of the S&L mortgage rate, the tangible capital/asset ratio, and energy prices, whereas it is a decreasing function of the cost of deposits and Tax Reform Act of 1986 provisions.