Forecasting Methods and Uses for Demand Deposits of U.S. Commercial Banks (Manuscripts) (Survey‪)‬

INTRODUCTION During the past decade, the banking industry has witnessed a multitude of dramatic changes, such as the deregulation of the financial sector, competition from other financial institutions, and new information technology such as the Internet. All of these changes have produced a combined effect, leading to the unprecedented present day competitive market environment. In order to survive in this highly volatile industry, competent forecasting and planning have become vital activities for banks. The managers of these institutions require timely and accurate forecasts of variables such as deposits, loans, exchange rates, and interest rates, in order that they might fulfill their planning and control responsibilities in an effective manner. In essence, all of the major budgeting practices of these institutions are dependent upon the forecasting function.