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Overnight RRP Operations as a Monetary Policy Tool: Some Design Considerations
Frost, Joshua; Logan, Lorie; Martin, Antoine; McCabe, … - Federal Reserve Board (Board of Governors of the … - 2015
We review recent changes in monetary policy that have led to development and testing of an overnight reverse repurchase agreement (ON RRP) facility, an innovative tool for implementing monetary policy during the normalization process. Making ON RRPs available to a broad set of investors,...
Persistent link: https://www.econbiz.de/10011255343
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Crowding Out Effects of Refinancing on New Purchase Mortgages
Sharpe, Steve; Sherlund, Shane M. - Federal Reserve Board (Board of Governors of the … - 2015
We present evidence that binding mortgage processing capacity constraints reduce mortgage originations to borrowers of low to modest credit quality. Mortgage processing capacity constraints typically bind when the demand for mortgage refinancing shifts outward, usually because of lower mortgage...
Persistent link: https://www.econbiz.de/10011261276
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Banking panics and deflation in dynamic general equilibrium
Carapella, Francesca - Federal Reserve Board (Board of Governors of the … - 2015
This paper develops a framework to study the interaction between banking, price dynamics, and monetary policy. Deposit contracts are written in nominal terms: if prices unexpectedly fall, the real value of banks' existing obligations increases. Banks default, panics precipitate, economic...
Persistent link: https://www.econbiz.de/10011261279
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Do Small Businesses Still Prefer Community Banks?
Berger, Allen N.; Goulding, William; Rice, Tara - Federal Reserve Board (Board of Governors of the … - 2013
We formulate and test hypotheses about the role of bank type – small versus large, single-market versus multimarket, and local versus nonlocal banks – in banking relationships. The conventional paradigm suggests that "community banks" – small, single market, local institutions – are...
Persistent link: https://www.econbiz.de/10010728891
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In Search of a Risk-free Asset
Yankov, Vladimir - Federal Reserve Board (Board of Governors of the … - 2014
To attract retail time deposits, over 7,000 FDIC insured U.S. commercial banks publicly post their yield offers. I document an economically sizable and highly pro-cyclical cross-sectional dispersion in these yield offers during the period 1997 - 2011. Banks adjusted their yields rigidly and...
Persistent link: https://www.econbiz.de/10011115663
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Modeling Money Market Spreads: What Do We Learn about Refinancing Risk?
Brousseau, Vincent; Nikolaou, Kleopatra; Pill, Huw - Federal Reserve Board (Board of Governors of the … - 2014
We quantify the effect of refinancing risk on euro area money market spreads, a major factor driving spreads during the … borrow over a given horizon, thus increasing refinancing risk. We measure refinancing risk by quantifying the sensitivity of … frequency. Results suggest that refinancing risk affects the spread significantly across time, albeit in a largely varying …
Persistent link: https://www.econbiz.de/10011119859
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Loan Sales and Bank Liquidity Risk Management: Evidence from a U.S. Credit Register
Irani, Rustom M.; Meisenzahl, Ralf R. - Federal Reserve Board (Board of Governors of the … - 2014
We examine the impact of banks' liquidity risk management on secondary loan sales. We track the dynamics of bank loan … importance of bank liquidity risk management as a motivation for loan sales, in addition to the credit risk transfer motive …
Persistent link: https://www.econbiz.de/10011119862
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Bank Liquidity and Capital Regulation in General Equilibrium
Covas, Francisco; Driscoll, John C. - Federal Reserve Board (Board of Governors of the … - 2014
We develop a nonlinear dynamic general equilibrium model with a banking sector and use it to study the macroeconomic impact of introducing a minimum liquidity standard for banks on top of existing capital adequacy requirements. The model generates a distribution of bank sizes arising from...
Persistent link: https://www.econbiz.de/10011075119
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Limited Deposit Insurance Coverage and Bank Competition
Shy, Oz; Stenbacka, Rune; Yankov, Vladimir - Federal Reserve Board (Board of Governors of the … - 2014
Deposit insurance designs in many countries place a limit on the coverage of deposits in each bank. However, no limits are placed on the number of accounts held with different banks. Therefore, under limited deposit insurance, some consumers open accounts with different banks to achieve higher...
Persistent link: https://www.econbiz.de/10011095298
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Tying loan interest rates to borrowers' CDS spreads
Ivanov, Ivan T.; Santos, Joao A. C.; Vo, Thu - Federal Reserve Board (Board of Governors of the … - 2014
We investigate how the introduction of market-based pricing, the practice of tying loan interest rates to credit default swaps, has affected borrowing costs. We find that CDS-based loans are associated with lower interest rates, both at origination and during the life of the loan. Our results...
Persistent link: https://www.econbiz.de/10010937969