Banking has been a fertile area for management science applications, as is evident from the review provided in this paper. The relevant management science models are discussed in terms of the areas of bank management for which they were intended. Under dynamic balance sheet management (i.e.,...

The concept of beta as the measure of systematic risk has been widely accepted in the academic and financial community. Increasingly, betas are being used to estimate the cost of capital for corporations. Despite this, however, biases are generally present in ordinary least squares (OLS)...

In his article [Smith, P. F. 1964. Measuring risk on consumer instalment credit. Management Sci. 11(2, November) 327-340], Smith develops a simple statistical method for measuring risk on individual accounts which he feels can be used for controlling the quality of portfolios of consumer...

The uses of regression analysis to estimate market yield curves for U.S. Government securities are considered in this paper. Several possible regression models for this purpose are examined. It is found that models which regress either the before-tax yield or the after-tax yield of governments...