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Effects of the Tax Reform Act of 1986 on Commercial Banks
By James M. O\'Brien and Matthew D. Gelfand
Summer 1987

In this article the effects the 1986 tax act will have on bank profitability are estimated. For all banks, taxes are likely to increase significantly but this increase in taxes will be offset by higher portfolio returns as banks shift away from tax exempt bonds to higher-paying taxable interest-bearing obligations. The authors do not believe, however, that bank soundness will be changed by the new tax provisions.

<span style=\"font-weight: bold;\">Effects of the Tax Reform Act of 1986 on Commercial Banks</span><br style=\"font-weight: bold;\" /><span style=\"font-weight: bold;\">By James M. O\'Brien and Matthew D. Gelfand</span><br style=\"font-weight: bold;\" /><