Journal Article
Cyclical Properties of Bank Margins: Small versus Large Banks
Grochulski, Borys; Zhang, Yuzhe; Schwam, Daniel (2018-01)
We study cyclical properties of the net interest margin (NIM) in the US banking sector in the aggregate as well as separately for small and large banks. In the aggregate and among large banks, NIM is countercyclical. Among small banks, however, NIM is procyclical. Further, we find that this result is driven by differences in the cyclical dynamics of small and large banks' funding costs rather than asset yields.
Economic Quarterly , Issue 1Q , Pages 1-33

Journal Article
Recent Spike in Immigration and Easing Labor Markets
Duzhak, Evgeniya A. (2024-07-15)
The Congressional Budget Office recently raised its demographic projections for net U.S. immigration. Most of the increase in the projections came from undocumented immigrants. Updating the CBO estimates with recent data points shows a continuing strong inflow of undocumented migrants. Analysis linking the revised estimates for this group to labor market statistics shows that immigrants joining the workforce are likely to have modestly eased labor market tightness.
FRBSF Economic Letter , Volume 2024 , Issue 19 , Pages 6

Briefing
The Differing Effects of the Business Cycle on Small and Large Banks
Grochulski, Borys; Schwam, Daniel; Steelman, Aaron; Zhang, Yuzhe (2018-11)
Small banks and large banks respond differently to business cycle fluctuations. The average net interest margin (NIM) at large banks is negatively correlated with the business cycle, while the average NIM at small banks is positively correlated with the business cycle. In a popular view, small banks are different from large banks because of their close relationships with their borrowers. But a decomposition of the cyclical properties of NIM into the asset and liability sides of the balance sheet suggests that small banks' procyclical NIM is due to their ability to keep funding costs less ...
Richmond Fed Economic Brief , Issue November