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The article presents a marketing case study designed to determine the geographic distribution of out-of-town merchants by merchants in Charlotte, North Carolina. Researchers compared the number of total checks drawn against Charlotte banks versus the number drawn against other banks to determine whether checks deposited by retail stores could be used as a measure of in-town versus out-of-town sales. Details related to traffic flow, origin-destination studies, and other factors affecting sales are presented. A map showing geographic sales distribution in Charlotte is presented.

In a recent study, Charles T. Taylor found a significant relationship between the loan mix and the average loan interest rate at individual banks. The regression analysis also showed a negative relationship between bank size (total deposits) and loan interest rates. In addition, an analysis of variance of the regression residuals revealed significant differences between average loan rates at the banks grouped by type of charter, geographic area, and par status. Other categorical variables often used as measures of competition were found to be insignificant. These variables are the number of banks in the city, metropolitan character, and bank ownership type. However, improper specification of Taylor's regression casts doubt on the reliability of the results. [ABSTRACT FROM AUTHOR]

The article discusses the compensatory balance requirements and the importance of these in a commercial banking environment and how different banks build their practices around the strictures. It is found that the requirements are most often found in large banks and for borrowers of sizable loans. It is found that banks of different sizes and locations administer such requirements differently and these can be explained through loan portfolio management and the degree of diversification in the banks' investments.

This article reports that the effectiveness of policies designed to remove inefficiencies in mortgage markets depends upon which condition dominates. This study uses data from 933 commercial banks that participated in the Federal Reserve System's Function Cost Analysis for 1968. In this study, regional mortgage markets are approximated by census regions. The existence of significantly higher gross yields in rural areas does not necessarily imply that the intra-regional flow of funds available for mortgage loans is inefficient. The empirical analysis is conducted in three stages. First, for each census region analysis of variance is conducted test for differences in average gloss yield on mortgages among commercial banks in rural, urban, and combined areas. Secondly, for each census region an analysis of variance is conducted to test for differences in yields on mortgages net of direct lending costs. Finally, average costs of mortgage lending are examined for differences in the rural areas, urban areas and combined areas.