260 posts on "Financial Institutions"
February 2, 2015
Bank Capital and Risk: Cautionary or Precautionary?
Do riskier banks have more capital? Banking companies with more equity capital are better protected against failure, all else equal, because they can absorb more losses before becoming insolvent.
December 3, 2014
Why Do Banks Keep All That “Fracking” Money?
In a recent post, I discussed the significant impact that “fracking” and other unconventional energy development has had on bank deposits.
December 1, 2014
What Do Banks Do with All That “Fracking” Money?
Banks play a crucial role in the economy by channeling funds from savers to borrowers.
November 3, 2014
Evolution of S‑Corporation Banks
Commercial banks didn’t become eligible for S-Corporation status until 1997, when President Bill Clinton signed legislation (the Small Business Job Protection Act of 1996) that allowed commercial banks to select S-Corporation as their preferred tax status.
October 20, 2014
Don’t Be Late! The Importance of Timely Settlement of Tri‑Party Repo Contracts
Tri-party repo is popular among securities dealers as a way to raise short-term funding.
October 15, 2014
How Do Liquidity Conditions Affect U.S. Bank Lending?
he recent financial crisis underscored the importance of understanding how liquidity conditions for banks (or other financial institutions) influence the banks’ lending to domestic and foreign customers.
October 1, 2014
Cross‑Country Evidence on Transmission of Liquidity Risk through Global Banks
Over the past thirty years, the typical large bank has become a global entity with subsidiaries in many countries.
Posted at 7:00 am in Banks, Euro Area, Financial Institutions, Financial Markets, International Economics, Liquidity | Permalink
September 29, 2014
Direct Purchases of U.S. Treasury Securities by Federal Reserve Banks
Kenneth D. Garbade From time to time, and most recently in the April 2014 meeting of the Treasury Borrowing Advisory Committee, U.S. Treasury officials have questioned whether the Treasury should have a safety net that would allow it to continue to meet its obligations even in the event of an unforeseen depletion of its cash balances. […]
Posted at 7:00 am in Fed Funds, Financial Institutions, Liquidity, Monetary Policy, Treasury | Permalink | Comments (2)
September 19, 2014
What Explains the June Spike in Treasury Settlement Fails?
In June of this year—as we noted in the preceding post—settlement fails in U.S. Treasury securities spiked to their highest level since the implementation of the fails charge in May 2009.
Measuring Settlement Fails
n June 2014, settlement fails of U.S. Treasury securities reached their highest level since the implementation of the Treasury fails charge in May 2009, attracting significant attention from market participants.
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