Journal Article
Could a CAMELS downgrade model improve off-site surveillance?
Meyer, Andrew P.; Vaughan, Mark D.; Gilbert, R. Alton (2002-01)
The Federal Reserve?s off-site surveillance system includes two econometric models that are collectively known as the System for Estimating Examination Ratings (SEER). One model, the SEER risk rank model, uses the latest financial statements to estimate the probability that each Fed-supervised bank will fail in the next two years. The other component, the SEER rating model, uses the latest financial statements to produce a ?shadow? CAMELS rating for each supervised bank. Banks identified as risky by either model receive closer supervisory scrutiny than other state-member banks.> Because many ...
Review , Volume 84 , Issue Jan. , Pages 47-63

Working Paper
Did FDICIA enhance market discipline on community banks? a look at evidence from the jumbo-CD market
King, Thomas B.; Vaughan, Mark D.; Meyer, Andrew P.; Hall, John R. (2002)
The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) directed the FDIC to resolve bank failures in the least costly manner, shifting more of the failure-resolution burden to jumbo-CD holders. We examine the sensitivity of jumbo-CD yields and runoffs to failure risk before and after FDICIA. We also examine the economic significance of estimated risk sensitivities before and after the Act, looking at the implied impact of risk on bank funding costs and profits. The evidence indicates that yields and runoff were sensitive to risk before and after FDICIA, but that this ...
Supervisory Policy Analysis Working Papers , Paper 2002-04

Working Paper
Can feedback from the jumbo-CD market improve bank surveillance?
Meyer, Andrew P.; Vaughan, Mark D.; Gilbert, R. Alton (2003)
We examine the value of jumbo certificate-of-deposit (CD) signals in bank surveillance. To do so, we first construct proxies for default premiums and deposit runoffs and then rank banks based on these risk proxies. Next, we rank banks based on the output of a logit model typical of the econometric models used in off-site surveillance. Finally, we compare jumbo-CD rankings and surveillance-model rankings as tools for predicting financial distress. Our comparisons include eight out-of-sample test windows during the 1990s. We find that rankings obtained from jumbo-CD data would not have improved ...
Working Papers , Paper 2003-041

Journal Article
Are small rural banks vulnerable to local economic downturns?
Meyer, Andrew P.; Yeager, Timothy J. (2001-03)
A potentially troubling characteristic of the U.S. banking industry is the geographic concentration of many banks? offices and operations. Historically, banking laws have prevented U.S. banks from branching into other counties and states. A potential adverse consequence of these regulations was to leave banks?especially small rural banks?vulnerable to local economic downturns. If geographic concentration of bank offices leaves banks vulnerable to local economic downturns, we should observe a significant correlation between bank performance and the local economy. Looking at Eighth District ...
Review , Volume 83 , Issue Mar , Pages 25-38

Working Paper
Can feedback from the jumbo-CD market improve off-site surveillance of community banks?
Meyer, Andrew P.; Vaughan, Mark D.; Gilbert, R. Alton (2002)
We examine the value of feedback from the jumbo-certificate-of-deposit (CD) market in the off-site surveillance of community banks. Using accounting data, we construct proxies for default premiums on jumbo CDs. Then, we produce rank orderings of community banks -- defined as institutions holding less than $500 million in assets (constant 1999 dollars) -- based on these proxies. Next, we use an econometric surveillance model to generate rank orderings based on the probability of encountering financial distress. Finally, we compare these rank orderings as tools for flagging emerging problems. ...
Supervisory Policy Analysis Working Papers , Paper 2002-08

Journal Article
How Fast Will Banks Adopt New Technology This Time?
Meyer, Andrew P.; Wiggins, Neil; Dahl, Drew (2017)
We offer insight into this question of what might happen with respect to the introduction of new technologies by looking back at what did happen following introduction of an earlier technology: bank websites. If the past is prologue, this may foretell how technological innovations in banking will be diffused in the future.
The Regional Economist , Volume 25 , Issue 4

Journal Article
Are district banks losing their profit edge?
Meyer, Andrew P.; Vaughan, Mark D. (1997-04)
After decades of beating out their peers in the return on average assets race, Eighth District banks now trail the pack.
The Regional Economist , Issue Apr , Pages 12-13

Journal Article
Should we ax the capital gains tax?
Meyer, Andrew P. (1995-07)
The Regional Economist , Issue Jul , Pages 10-11

Journal Article
Why Are More Credit Unions Buying Community Banks?
Meyer, Andrew P. (2019)
This trend is growing but remains small because of regulatory and business-model challenges.
The Regional Economist , Volume 27 , Issue 1

Journal Article
Scale Matters: Community Banks and Compliance Costs
Meyer, Andrew P.; Neely, Michelle Clark; Dahl, Drew (2016-07)
Research shows that complying with government regulations is more burdensome for smaller community banks than larger community banks. Despite spending proportionately more resources on compliance, the smaller banks do not perform as well as the larger ones, at least in one key metric.
The Regional Economist , Issue July