"Quarter-End Effects in Banks: Preferred Habitat or Window Dressing?" by Vladimir Kotomin and Drew B. Winters
 

Document Type

Article

Publication Date

2006

Keywords

Window dressing, Preferred habitat

Abstract

Allen and Saunders (1992) document abnormal behavior of bank assets and liabilities at the turn-of-the-quarter and attribute it to window dressing by banks. Using different methods we re-visit bank turn-of-the-quarter balance sheet activity. We also examine quarter-end changes in the effective fed funds rates and fed funds rate standard deviations. We confirm the presence of turn-of-the-quarter activity on bank balance sheets and in the fed funds market. However, we conclude that the turn-of-the-quarter effects are more consistent with customer preferred habitats than window dressing.

Comments

This article was originally published in Journal of Financial Services Research 29 (2006): 61-82. https://link.springer.com/article/10.1007/s10693-005-5108-1.

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