What question did this study set out to answer?

This research aims to evaluate the effects of state taxation policies on bank asset management, specifically regarding tax-exempt securities.

The Impact of State Taxation on the Investment Portfolio of Banks.

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Empirical analysis reveals how state tax policies influence bank investments in tax-exempt securities.

This research aims to evaluate the effects of state taxation policies on bank asset management, specifically regarding tax-exempt securities.
Empirical examination of state tax policies and their relation to bank investment decisions.
Analysis of how differing state deductibility of interest expenses affects investment in tax-exempt income.
Focus on varying marginal tax rates across states and their implications for banks.
Banks in states with higher marginal tax rates show increased investment in tax-exempt securities due to greater tax incentives.
Low marginal tax rates lead to minimal tax incentives for deducting interest expenses, affecting banks' asset management strategies.

A 1998 study studied this question.

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