Research Working Papers
Do Bank Bailouts Reduce or Increase Systemic Risk? The Effects of TARP on Financial System StabilityBy Raluca A. Roman, Allen N. Berger and John Sedunov RESEARCH WORKING PAPERThe TARP bailout significantly reduced contributions to systemic risk, particularly for large banks, safe banks, and banks located in strong local economies. These reductions occurred primarily through a capital cushion channel.
Did Saving Wall Street Really Save Main Street? The Real Effects of TARP on Local Economic ConditionsBy Raluca A. 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.
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.
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.
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.
Fumiko Hayashi identifies electronic payment products that can mitigate unbanked consumers’ problems with the banking 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.