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Keywords:Financial institutions 

Journal Article
Economic development in rural Wisconsin: developing a 21st century response to compete in today’s global marketplace

In October 2011, the Federal Reserve Bank of Chicago?s Community Development and Policy Studies division co-sponsored a two-day conference that explored and discussed policies that speed, strengthen, and enhance economic development in Wisconsin?s rural areas to increase their competitiveness in today?s global economy. This article summarizes key points from presentations and discussions at the symposium. ; Over 150 participants, representing community banks in the Seventh Federal Reserve District, economic development/finance agencies, small business owners, researchers, and policymakers, ...
Profitwise , Issue Nov

Journal Article
Financial modernization and regulation

FRBSF Economic Letter

Working Paper
An experimental analysis of contingent capital triggering mechanisms

This paper reports an experiment that evaluates three regimes for triggering the conversion of contingent capital bonds into equity: (a) a ?regulator? regime, where socially motivated regulators make conversion decisions based on observed prices, (b) a ?fixed trigger? regime where a price threshold triggers a mandatory conversion, and (c) a ?prediction market? regime where we supplement the regulator?s information set with the results of a prediction market that elicits traders? perceived likelihood of a conversion. Consistent with theory, we observe informational and allocative ...
Working Paper , Paper 11-01

Conference Paper
The policy response to financial crises: making the macroprudential approach operational

Proceedings - Economic Policy Symposium - Jackson Hole

Working Paper
U.S. domestic and international financial reform policy: Are G20 commitments and the Dodd-Frank Act in sync?

The Dodd-Frank Act of 2010 is the keystone policy response directed at reforming U.S. financial system activities and oversight in the wake of the 2007-2009 financial crisis. The United States also has financial system reform policy commitments in the international arena, including in particular by virtue of its membership in the G20. This analysis considers U.S. policy initiatives related to a core dimension of financial system reform: risks posed by systemically important financial institutions ("SIFIs"). It provides a comparison of SIFI policy initiatives and timetables under both the ...
International Finance Discussion Papers , Paper 1024

Working Paper
International reserves and rollover risk

Two striking facts about international capital flows in emerging economies motivate this paper: (1) Governments hold large amounts of international reserves, for which they obtain a return lower than their borrowing cost. (2) Purchases of domestic assets by nonresidents and purchases of foreign assets by residents are both procyclical and collapse during crises. We propose a dynamic model of endogenous default that can account for these facts. The government faces a trade-off between the benefits of keeping reserves as a buffer against rollover risk and the cost of having larger gross debt ...
Working Paper , Paper 13-01

Journal Article
Financial intermediation as delegated monitoring: a simple example

Economic Quarterly , Issue Sum , Pages 51-66

Working Paper
Consistency conditions for regulatory analysis of financial institutions: a comparison of frontier efficiency methods

We propose a set of consistency conditions that frontier efficiency measures should meet to be most useful for regulatory analysis or other purposes. The efficiency estimates should be consistent in their efficiency levels, rankings, and identification of best and worst firms, consistent over time and with competitive conditions in the market, and consistent with standard nonfrontier measures of performance. We provide evidence on these conditions by evaluating and comparing efficiency estimates on U.S. bank efficiency from variants of all four of the major approaches -- DEA, SFA, TFA, and ...
Financial Services working paper , Paper 97-02

Conference Paper
Financial reform in the United States and Japan: a comparative overview

Proceedings , Issue Dec , Pages 39-58

Working Paper
Prospects for immigrant-native wealth assimilation: evidence from financial market participation

Because financial transactions are important for wealth accumulation, and rely on trust and confidence in institutions, the financial market behavior of immigrants can provide important insights into the assimilation process. Compared to the native-born, immigrants are less likely to own savings and checking accounts and these differences tend to persist over time. Our results suggest that a large share of the immigrant-native gap in financial market participation is driven by group differences in education, income, and geographic location. For a given immigrant, the likelihood of financial ...
Working Paper Series , Paper WP-04-18

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