Bank Functional Cost Analysis: A Case Study

Abstract

In Chapter I this paper establishes the need for widespread bank cost analysis. Chapter II begins with a quick history of various cost programs which are offered to commercial banks. The major portion of th1s chapter handles the development of the Functional Cost Analysis program administered by the Federal Reserve System. Chapter III delves rather thoroughly into the technical aspects of Functional Cost Analysis. In Chapter IV a particular bank is analyzed from its report in order to illustrate some of the uses of this new method of bank cost accounting. Several more applications are stated in Chapter V, and Chapter VI concludes by giving due cred1t to Functional Cost Analysis because of its excellent contribution to bank cost analys1s.