Search Results
Journal Article
Banking Trends: How and Why Bank Capital Ratios Change Over the Business Cycle
Small-bank and large-bank capital ratios behave quite differently. To under-stand the difference, look at the data.
Journal Article
Banking Trends: Skin in the Game in the CMBS Market
Issuers of commercial mortgage-backed securities must now retain a portion on their own books. What evidence is there that the rule will reduce risky lending?
Journal Article
The Rise in Loan-to-Deposit Ratios: Is 80 the New 60?
Liquidity ratios at small banks have climbed in recent decades. Why has this happened? Should regulators be concerned? A traditional signal that a bank may not have enough liquid assets to cover a sudden loss of funding has increased dramatically at small banks in recent decades. Small banks? median ratio of the value of their loans outstanding to the value of their deposits has risen from around 60 percent in the second half of the 1980s to around 80 percent today. Meanwhile, the same measure of liquidity has increased about 5 percentage points at large banks. How can we explain this big ...
Journal Article
Do Stress Tests Reduce Credit Growth?
Stress tests are supposed to ensure your access to credit during the next downturn, but some critics claim that they also limit your access to credit today. We test that theory.
Journal Article
Banking Trends: Is Small-Business Lending Local?
Although large banks dominate the market for small-business loans, a local presence still matters
Journal Article
Banking Trends: The Rise of the Single-Family REIT
A new investment vehicle spread rapidly after the Great Financial Crisis. Should we be concerned?
Journal Article
Banking Trends: Why Banks Finance Their Nonbank Competitors
The explosive growth in nonbank financial institutions seems to have come at the expense of banks, but a closer look reveals otherwise.
Journal Article
Banking Trends: Synthetic Risk Transfers
Many U.S. banks use financial instruments to reduce regulatory capital and hedge credit risk.
Journal Article
Banking Trends: How Banks Fund Their Lending
Since 2008, banks have increasingly relied on deposits for funding. But lending has changed, too.
Journal Article
How Our Region Differs
The banking industry has undergone a sea change in the last 30 years. Regulatory changes and technological advances have led to dramatic increases in the size and market share of large banks, while banks have shifted their activities notably away from commercial lending toward real estate lending. While these broad trends are true of banks in the Third District served by the Federal Reserve Bank of Philadelphia, our regional banking market also differs in some interesting ways. Our small regional banks are larger and concentrate much more heavily on residential real estate lending and less on ...