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Alternative central bank credit policies for liquidity provision in a model of payments

David C. Mills, Jr. - Federal Reserve Board (Board of Governors of the … - 2005

I explore alternative central bank policies for liquidity provision in a model of payments. I use a mechanism design …, the central bank invests in costly enforcement and charges an interest rate to recover costs. I show that the second best … solution is not distortionary. In the second policy, the central bank requires collateral. If collateral does not bear an …

Persistent link: https://www.econbiz.de/10005721142

Central bank talk: does it matter and why?

Kohn, Donald L.; Sack, Brian P. - Federal Reserve Board (Board of Governors of the … - 2003

found to significantly affect market interest rates, indicating that central bank "talk" conveys important information to …

Persistent link: https://www.econbiz.de/10005721234

Are long-run inflation expectations anchored more firmly in the Euro area than in the United States?

Beechey, Meredith J.; Johannsen, Benjamin K.; Levin, … - Federal Reserve Board (Board of Governors of the … - 2008

This paper compares the recent evolution of long-run inflation expectations in the euro area and the United States, using evidence from financial markets and surveys of professional forecasters. Survey data indicate that long-run inflation expectations are reasonably well-anchored in both...

Persistent link: https://www.econbiz.de/10005394111

Will monetary policy become more of a science?

Mishkin, Frederic S. - Federal Reserve Board (Board of Governors of the … - 2007

This paper reviews the progress that the science of monetary policy has made over recent decades. This progress has significantly expanded the degree to which the practice of monetary policy reflects the application of a core set of "scientific" principles. However, there remains, and will...

Persistent link: https://www.econbiz.de/10005394140

Risk and concentration in payment and securities settlement systems

David C. Mills, Jr.; Nesmith, Travis D. - Federal Reserve Board (Board of Governors of the … - 2007

such systems are operated by central banks and are liquidity intensive. Central banks often provide inexpensive liquidity … these questions, central banks need to understand what factors influence the timing of settlement. This paper offers a model … participants' incentives to influence the use of intraday liquidity and the resultant credit exposure of a central bank. The model …

Persistent link: https://www.econbiz.de/10005394158

A framework for assessing the systemic risk of major financial institutions

Huang, Xin; Zhou, Hao; Zhu, Haibin - Federal Reserve Board (Board of Governors of the … - 2009

In this paper we propose a framework for measuring and stress testing the systemic risk of a group of major financial institutions. The systemic risk is measured by the price of insurance against financial distress, which is based on ex ante measures of default probabilities of individual banks...

Persistent link: https://www.econbiz.de/10008633418

Who competes with whom? the case of depository institutions

Adams, Robert M.; Brevoort, Kenneth P.; Kiser, Elizabeth K. - Federal Reserve Board (Board of Governors of the … - 2005

Little empirical work exists on the substitutability of depository institutions. In particular, the willingness of consumers to substitute banks for thrifts and to switch between multimarket and single-market institutions (i.e., institutions with large vs. small branch networks) has been of...

Persistent link: https://www.econbiz.de/10005721037

Testing for market discipline in the European banking industry: evidence from subordinated debt issues

Sironi, Andrea - Federal Reserve Board (Board of Governors of the … - 2000

The question of whether private investors can rationally discriminate between the risk taken by banks is empirically investigated by testing the risk sensitivity of European banks' subordinated notes and debentures (SND) spreads. A unique dataset of issuance spreads, issues and issuers rating,...

Persistent link: https://www.econbiz.de/10005721052

Globalization of financial institutions: evidence from cross-border banking performance

Berger, Allen N.; DeYoung, Robert; Genay, Hesna; Udell, … - Federal Reserve Board (Board of Governors of the … - 2000

We address the causes, consequences, and implications of the cross-border consolidation of financial institutions by reviewing several hundred studies, providing comparative international data, and estimating cross-border banking efficiency in France, Germany, Spain, the U.K., and the U.S....

Persistent link: https://www.econbiz.de/10005721062

The profitability of small, single-market banks in an era of multimarket banking

Hannan, Timothy H.; Prager, Robin A. - Federal Reserve Board (Board of Governors of the … - 2006

This paper examines the relationship between multimarket bank presence and the profitability (and therefore viability) of small, single-market banks. We find that increased presence of multimarket banks is associated with a significant reduction in the profitability of small, single-market banks...

Persistent link: https://www.econbiz.de/10005721074