bankingindustry. This goal is served by taking a broad view of thepayments business and analyzing information provided bylarge bank … now furnish material onsources of noninterest income and the amounts earned thatis much more detailed than the information … filed in regularreports to supervisors. This information is used to estimatethe size of the payments area.[...] …

length of time between bank examinations affects thequality of information available to supervisors. For thesepurposes, we … define the quality of information in terms ofhow accurately the information from a prior examinationreflects the current … condition of a bank. Our analysisassumes that examination information incorporates twotypes of data: information available from …

current inflation and output, in the context of an optimizingmodel with nominal-price stickiness. Under a commitment regime …, if current policy turns outto be too expansionary (contractionary) because of the bank’s information problem …