Recent Articles

Did Bank Borrowers Benefit from the TARP Program? The Effects of TARP on Loan Contract Terms

By Allen N. Berger, Tanakorn Makaew, and Raluca A. Roman
RESEARCH WORKING PAPERTARP led to more favorable credit terms to customers borrowing from the recipient banks in all five contract terms studied: loan amounts, spreads, maturities, collateral, and covenants. Benefits extended primarily to safer borrowers, and borrowers with and without a relationship.

Shareholder Activism in Banking

By Raluca A. Roman
Research Working Paper Shareholder activism may generally be a destabilizing force in banking, increasing bank risk while creating market value for shareholders. This may come at the expense of bank creditors, as per a creditor-shareholder conflict. However, activism effects may be muted during crises. 

Internationalization and Bank Risk

By Allen N. Berger, Sadok El Ghoul, Omrane Guedhami, and Raluca A. Roman
Research Working Paper Internationalization of U.S. banks is associated with higher risk, suggesting foreign market factors that make U.S. operations risky outweigh diversification benefits. Effect is stronger during crises and may be explained by agency problems related to poor corporate governance.

Faster Payments in the United States: How Can Private Sector Systems Achieve Public Policy Goals?

By Fumiko Hayashi
RESEARCH WORKING PAPERTo help private-sector faster payments systems achieve public policy goals of ubiquity, safety, and efficiency, the Federal Reserve could influence governance of the private-sector systems through its leadership role.

Change Is Coming: What the EMV Migration May Mean for Payments Innovation

By Terri Bradford and Jesse Leigh Maniff 
Payments System Research BriefingThis article considers how the upcoming shift from magnetic stripe to chip technology may affect the survival of card-based payment innovations.

Bank Consolidation and Merger Activity Following the Crisis

By Michal Kowalik, Troy Davig, Charles S. Morris and Kristen Regehr
Economic Review Michal Kowalik, Troy Davig, Charles S. Morris, and Kristen Regehr analyze the financial characteristics of acquired community banks from 2011 to 2014.

Credit Scoring and Loan Default

By Geetesh Bhardwaj and Rajdeep Sengupta
Research Working Paper The performance of FICO scores as measures of borrowers' creditworthiness on subprime mortgage originations remains stable over time after controlling for other loan attributes and changes in economic conditions.

To Sell or To Borrow? A Theory of Bank Liquidity Management

By Michal Kowalik
Research Working Paper Banks' reliance on risky securitized assets to manage liquidity leads to liquidity crunches in interbank lending markets.

Payments Conferences

Conference explores consumer payment innovation and the role of public policy in an age of increasing connectedness. Access materials from past conferences: 20152012 | 2009 | 2007 | 2005.

Public Authority Involvement in Payment Card Markets: Various Countries (08/2015)

A summary of regulatory developments in interchange fees and surcharges in various countries is provided.

Credit and Debit Card Interchange Fees in Various Countries (08/2015)

Levels of interchange fees for credit and debit cards are compared among countries in Europe, Oceania and North America.

Credit and Debit Card Interchange Fees in the U.S. (08/2015)

Charts show trends of U.S. credit and debit card interchange fees for several merchant categories.

Payments System Research Briefings

Our briefings cover payments methods, developments in payments networks, and various participants' roles in the payments system.

Payments System Research Working Papers

Our working papers cover a range of topics, including types of payments methods, developments in payments networks, and various participants' roles in the payments system.

A Guide to the ATM and Debit Card Industry: 2006 Update

This book is a 2006 update that documents industry trends and patterns and discusses their implications.

A Guide to the ATM and Debit Card Industry

This book provides an overview of the history and developement of the ATM and debit card industry, details the mechanics of ATM and debit transactions, reviews trends in ATM and debit transaction volume and pricing, and discusses industry and public policy issues.

Nonbanks in the Payments System

This book examines nonbank participation of payments activities and the roles nonbanks play in specific transaction types.