Electronic bill payment and presentment: a primer
Electronic bill payment and presentment (EBPP) services are a core component of many financial institutions' on-line banking offerings. This paper discusses the laws (state and federal), regulations, and regulatory guidance generally applicable to EBPP services offered through financial institutions. Particular emphasis is given to (i) the Electronic Fund Transfer Act and Regulation E (including provisions relevant to dispute resolution, liability for unauthorized transactions, and electronic disclosure) and (ii) regulatory guidance with respect to outsourcing arrangements in connection with ...
The importance of payments-driven revenues to franchise value and in estimating bank performance
This paper examines how the production of payment services impacts the franchise value of banks. It also explores whether analysis are incorrectly measuring the performance of the banking sector and failing to realize the full importance of payments-driven revenues to banks. In initial empirical analysis, we find limited evidence to suggest that higher payments-driven revenues are associated with higher franchise value. We find, also, that estimates of productive efficiency change dramatically for a small number of banks heavily involved in payments services. We find evidence to suggest that ...
A peek at the examiners playbook phase III
Simple forecasts of bank loan quality in the business cycle
Experience from models such as SEER suggests that bank financial condition predict bank failures. However, it has been difficult to find a relationship between macroeconomic variables and bank failures. This paper shows ways in which simple time-series techniques can be used to forecast financial conditions of banks. The models include macroeconomic variables in order to consider systemic cyclical factors in forecasting. In addition, analysis of regression residuals is used to obtain relatively early warnings of unusual performance. ; The empirical result suggest that a limited number ...
Pooled trust preferred stock -- a new twist on an older product