Population Research and Policy Review

, Volume 9, Issue 2, pp 161–178 | Cite as

Structural changes in high performing minority and nonminority banks in the deregulated banking environment

  • Don P. Holdren
  • Jafar Alavi


This study considers the changes that have occurred in the balance sheets of high-performance minority-owned banks during the period 1981–1988 and compares them to changes in the balance sheets of high-performance nonminority-owned banks. The changes are analyzed using two methodologies: decomposition analysis and a t-test of the mean differences of the balance sheet and of its component parts. The study examines changes in total assets, total liabilities, and the balance sheets as a whole, and then disaggregates the assets and liabilities to determine where the changes occurred in each group of banks. The findings show statistically significant differences in the average proportions of assets and liabilities between the two groups: minority banks held more cash than nonminority banks, fewer loans, more premises, a higher volume of other assets, more common stock and lower undivided profits. Although the wide differences in the structural changes of assets and liabilities began to narrow in 1985–1987, the analysis indicates the differences may again be increasing between the two groups.


Structural Change High Volume Economic Policy Total Asset Balance Sheet 
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Copyright information

© Kluwer Academic Publishers 1990

Authors and Affiliations

  • Don P. Holdren
    • 1
  • Jafar Alavi
    • 1
  1. 1.Center for Banking, College of Business, East Tennessee State UniversityJohnson CityUSA

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