RESEARCH WORKING PAPERPrepaid cards are significantly less costly than checking accounts for unbanked consumers who make overdrafts or need short-term loans, but prepaid cards are more costly for the other unbanked consumers.
Did Saving Wall Street Really Save Main Street? The Real Effects of TARP on Local Economic ConditionsBy Raluca Roman and Allen N. Berger
RESEARCH WORKING PAPERTARP significantly increased net job creation and net business hiring and decreased business and personal bankruptcies. These results suggest saving Wall Street through TARP may have helped save Main Street, contributing to the TARP cost-benefit debate.
By Terri Bradford
PAYMENTS SYSTEM RESEARCH BRIEFINGThis Briefing article offers highlights from the Federal Reserve Bank of Kansas City's fifth international payments conference, "The Puzzle of Retail Payments Security: Fitting the Pieces Together to Protect the Retail Payments System," hosted June 25-26, 2015.
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.
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.
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.
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.
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.
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.
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.