New England banks and the Texas experience
New England banks are currently suffering from problems similar to those that caused the demise of many Texas banks. In both cases, a boom in the real-estate sector was followed by a sharp contraction caused by weakness in the leading sectors of the economy. In both cases, banks had greatly expanded their real-estate lending, and the declining real-estate prices produced substantial loan losses. ; This study suggests, however, that these similarities do not imply that New England will go on to repeat the Texas experience. The author finds that New England does not suffer from construction ...
Bank regulatory agreements in New England
New England's recovery from our most recent recession has been marked by unusually slow growth in bank lending. As of the third quarter of 1994, total loans still had recovered only to 76 percent of the level attained at the peak in the third quarter of 1989. Numerous recent studies have identified low bank capital ratios as a factor contributing to slow growth in loans, but a direct link between the level of bank lending and bank regulation has been established only recently.> To better understand how regulatory policy might directly influence bank lending, this article examines the ways ...
Resolving a banking crisis: what worked in New England
Many Asian economies are now experiencing economic hardship, their troubles stemming in part from crises in their banking sectors. Given the important role the banking sector plays in these economies, resolution of their banking crises is a vital first step toward resuming economic growth. Unfortunately, the steps taken so far appear inadequate, and many observers compare current attempts to those of U.S. regulators during our initial efforts to resolve the S&L crisis. Given the lengthy time it took and the high cost of the taxpayer-supported resolution, this is not a comparison the Asian ...
International remittances: information for New England financial institutions
Each year, individuals in the United States send billions of dollars abroad. Most of these remittances are sent by immigrants to their home countries, and the majority of them flow through a handful of service providers who dominate this highly profitable business. As the immigrant population in the United States continues to grow, the volume of remittances climbs each year, reaching nearly $35 billion in 2004. Bankers and other financial professionals are taking notice, and financial institutions around the country are investigating ways to enter the market and capture a share of this ...
The credit crunch
Getting the banks into balance: implications for borrowers
The New England credit crunch
Bank capital regulation and the New England credit crunch