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Working Paper
Macroprudential Policy: Results from a Tabletop Exercise
This paper presents a tabletop exercise designed to analyze macroprudential policy. Several senior Federal Reserve officials were presented with a hypothetical economy as of 2020:Q2 in which commercial real estate and nonfinancial debt valuations were very high. After analyzing the economy and discussing the use of monetary and macroprudential policy tools, participants were then presented with a hypothetical negative shock to commercial real estate valuations that occurred in the second half of 2020. Participants then discussed the use of the tools during an incipient downturn. Some of the ...
Newsletter
Whither the stock market?
Journal Article
The challenges facing community banks: in their own words
Ten years of deregulation, new technology, and increase competition have made the U.S. banking industry a less hospital place for many community banks. But the consensus view among ten community bankers recently surveyed by the Federal Reserve is that rapid industry change has provided opportunities as well as threats, and that well-managed, innovative community banks will be able to profitably coexist with large multi-state banks in the future.
Working Paper
Factors Affecting Regional Bank Health and Supervisory Rating: An Exploration
Local commercial real estate conditions are positively correlated with the health of regional banks (assets between $10 billion and $100 billion), as measured by the composite confidential supervisory rating. Among other variables, return on assets is positively correlated with our proxy of bank health, but size and capital ratio are negatively correlated. Among the different components of the rating, the management rating has the most influence on the composite rating.