Why do banks' loan losses differ?
Does immigration reduce imbalances among labor markets or increase them? : evidence from recent migration flows
Immigration from abroad has increased dramatically since the 1960s, as workers from less developed countries have moved to the U.S. in search of higher wages. The new wave of immigration has reignited the debate about the impact of immigration on the economy. One way immigration affects the economy is through the labor market. At the national level, immigration is widely believed to harm native workers with similar skills by reducing their wages or their probability of obtaining a job. But immigration can also alter the allocation of workers across markets?either for better or for worse. If ...
Deposit deregulation, credit availability, and monetary policy
The cross-market spillover of economic shocks through multi-market banks
This paper investigates the mortgage lending of banks operating in multiple U.S. metropolitan areas during the housing market collapse of 2007-2009. Some metro areas in the U.S. suffered much greater mortgage defaults than others. We use this regional variation to identify whether high mortgage delinquencies in some markets affected multi-market banks' mortgage lending in other markets. Our results show that multi-market banks reduced local mortgage lending in response to delinquencies in other markets, consistent with the view that local economic shocks can be transmitted to other regions ...
Bank credit growth in the Tenth District: recent developments
Bank credit, the sum of loans and securities at commercial banks, is widely viewed as providing information about the current and future state of the economy. Analysts have been concerned about the behavior of bank credit during the nation's recovery from the 1990-91 recession. At first, analysts worried the recovery would be hampered because banks were making too few loans and purchasing too many securities. More recently, loan growth has picked up and securities growth has slowed, a development some analysts view as a sign the economy is growing too fast to keep inflationary pressures in ...
Does faster loan growth lead to higher loan losses?
During the last couple of years, concern has increased that the exceptionally rapid growth in business loans at commercial banks has been due in large part to excessively easy credit standards. Some analysts argue that competition for loan customers has greatly increased, causing banks to reduce loan rates and ease credit standards to obtain new business. Others argue that as the economic expansion has continued and memories of past loan losses have faded, banks have become more willing to take risks. Whichever explanation is correct, the acceleration in loan growth could lead eventually to a ...
What can regional manufacturing surveys tell us? lessons from the Tenth District
The Federal Reserve Bank of Kansas City conducts a monthly survey of over 100 manufacturers across the Tenth District. Other Federal Reserve Banks conduct similar surveys of manufacturers within their districts, as do a number of regional associations of purchasing managers. ; The increased attention paid to regional manufacturing surveys makes it important to know what kind of information these surveys provide. These surveys differ from other data sources by collecting only qualitative information, such as the direction of change in activity. The surveys could be useful either because they ...
Multi-office bank lending to small businesses: some new evidence
In a long-awaited move, Congress enacted legislation last fall authorizing full interstate banking. While most states had already acted to allow some form of entry by outside holding companies, the new law was expected to hasten the spread of large multi-office banking organizations. Most analysts believe the change will benefit the public by increasing competition, improving services to depositors, and reducing banks' vulnerability to local downturns. Concern has been voiced, however, that the benefits of multi-office banking may be achieved at the expense of small businesses. Some analysts ...