This is the second article in a series which explores the changing role of banks in the financial intermediation process. It accompanies a Liberty Street Blog series. Both discuss the complexity of the credit intermediation chain associated with securitization and note the growing participation...

Community banks seem to have the most to fear about the state of commercial real estate today. The problems with these loans, however, shouldn't derail the entire economy.

The effects of debt relief on incentives to accumulate debt, consume, and invest are an important concern for donors and recipients. Using a dynamic stochastic general equilibrium model of a small open economy with a minimum consumption requirement and an endogenous relief probability, we show...

Although loan quality in the U.S. banking industry deteriorated in recent years, a comparison with the banking crisis of the late 1980s and early 1990s suggests that the industry is in a far better position today than it was a decade ago. The percentage of troubled loans is lower, loan quality...

Commercial loans are a major source of financing for small businesses. To enhance the likelihood of obtaining a commercial loan with the most favorable terms, sufficient information must be made available to the bank loan officer (BLO). Based on a review of the banking literature and a study of...