Search

The relationship between an individual's financial behavior and financial satisfaction is well known. Less evidence is available about how these two constructs interplay within couples. This considered, the current paper aims to (a) examine whether individuals' financial satisfaction is influenced by their own financial behavior (actor effect) and their partner's financial behavior (partner effect); (b) examine whether these two effects vary between husbands and wives; and (c) verify how couples' bank account status (i.e., only joint bank accounts, only separate bank accounts, both joint and separate bank accounts) moderate these effects. The current study draws 1,475 heterosexual early married couples from Couple Relationships and Transition Experiences study and modeled dyadic data through an Actor Partner Interdependence Model. Results indicate that actor's financial behavior is associated only with one's own financial satisfaction (actor effect) and not one's partner's financial satisfaction (partner effect). This holds for both wives and husbands. Furthermore, individuals who hold only joint bank account(s) are more likely to have financial behaviors similar to their partner than individuals who hold only separate bank accounts or both joint and separate accounts. Couples who hold only separate accounts are more likely to engage in less positive financial behavior than their counterparts. Implications for relationship therapists and financial professionals are discussed. [ABSTRACT FROM AUTHOR]

Using the near universe of U.S. consumer credit cards, we show that banks transmit their wholesale funding shocks to consumers by reducing their credit card limits. Credit-constrained consumers who are unable to hedge against the transmitted shock by accessing other credit cards experience a stronger and more persistent reduction in aggregate credit card limits at the consumer level. Consequently, these credit-constrained consumers reduce their aggregate credit card borrowing. Our results document a credit card lending channel for the transmission of adverse bank shocks and show who bears the costs of fragile bank funding structures. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

To date, descriptive accounts and reform proposals have framed the problems arising from "shadow banking" as about the risks of lending and maturity transformation by nonbanks operating outside the guardrails of banking law. But shadow banks engage in the business of investing, not lending, and their ownership interests are often held by traditional banking entities. By ignoring the ownership structure and investment activities of shadow banks, the academic literature has overstated the risks that nonbanks pose to financial stability and underestimated the ability of existing regulatory frameworks to address the information and incentive problems posed by shadow banks. This Article first shows that the innovative design of many securitization vehicles is to give banking entities residual and subordinated economic exposure to securitization vehicles without triggering a legal conclusion that the vehicles are bank "affiliates" or "investment companies." Thus, these securitization vehicles are not regulated under the banking laws or investment company laws. Nevertheless, this Article presents data showing that the traditional banking sector owned, controlled, and backstopped many of the securitization vehicles at the heart of the 2007-2009 financial crisis. Thus, most of these so-called shadow banks were instruments of the traditional banking sector, not bank competitors. This Article identifies the shadow banks of most concern to ongoing financial stability as entities that would be regulated as investment companies but for an asset-based exemption from regulation under the Investment Company Act-especially when the shadow bank is backstopped by a banking entity. This Article advances a reform proposal that would update the boundary lines between banking entities, regulated investment companies, and unregulated investment companies. The banking laws should add an economic exposure test to the definition of "affiliate" to bring unregulated entities backstopped by banks, and indirectly backstopped by the federal safety net, into the regulatory perimeter. Moreover, the exemptions from the Investment Company Act of 1940 for investment companies that hold only certain types of assets should be narrowed or eliminated altogether. This bottom-up, transactional approach would better regulate risks to investors and the public than the top-down approach in the Dodd-Frank Act that relies on regulators identifying and regulating "systemically important" nonbanks. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study was to explore the concept of distrust of traditional banking institutions as a factor that can explain the choice to remain unbanked in a marketplace that is designed to be financially inclusive. Design/methodology/approach: Earning, spending, saving and borrowing data collected between May 2021 and February 2022 from 17,819 consumers living in the United States were used to examine the factors associated with distrust of banks. Using a conceptual framework borrowed from the health services profession, the study was conducted in two stages. At the first stage, distrust among the unbanked and banked was estimated using a Boruta-random forest algorithm. At the second stage of the analysis, a logit regression model was estimated to validate the variables identified in the Boruta-random forest analysis. Findings: Results from the analyses show that distrust of banks is multi-layered where being older, believing the country is heading in the wrong direction and being less confident in one's ability to obtain a personal loan in the amount of $1 to $999 are important factors related to distrust of banks among the unbanked. Research limitations/implications: This study shows how an ensemble machine learning technique based on a decision-tree methodology can be used to obtain unique insights into complicated data and large datasets within the bank marketing field. Originality/value: The paper provides a discussion about ways domains of trust and specific variables can be utilized to address the persistent problem of financial exclusion in the United States. Implications for bankers, researchers, educators and policymakers are provided. [ABSTRACT FROM AUTHOR]

The paper looks at the results of Apergis, Christou and Kynigakis (2019) and proposes a novel model that allows time variation in volatility, skewness and kurtosis, based on multivariate stable distributions. The analysis also looks at bank sector CDS, insurance sector CDS, sovereign bonds, equity and volatility indices. The findings corroborate their results and indicate significant evidence of contagion, especially through the channels of co‐skewness and co‐kurtosis. In addition, it establishes a higher order channel of causality between co‐skewness and co‐kurtosis. [ABSTRACT FROM AUTHOR]

Copyright of Jurídicas CUC is the property of Corporacion Universidad de la Costa, CUC and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Both interest and noninterest earnings form the two critical components of the income stream of commercial banks. While interest earnings are tied to the lending volume and prevailing interest rates primarily dictated by the monetary policy and central bank interventions, noninterest earnings can come from diversified sources like income from fiduciary activities, trading revenue, service charges on deposit accounts, fee income, etc. Noninterest earnings can be unrelated to lending volume and prevailing interest rates and possibly uncorrelated with the monetary policies. Noninterest earnings may be a more robust source of income, especially during the low-interest rate regimes. Managing the noninterest to interest earnings is a critical component of income smoothing used by the banks. Noninterest earnings have become a significant component of banks' overall earnings in the last four decades, and the ratio of noninterest to interest earnings has also grown significantly, raising questions about the primary role of the banking sector in financial intermediation as defined by the collection and disbursement of loanable funds throughout the economy. The rise in noninterest earnings also raises questions about the potential conflict of interest especially if banks earn significant consulting income from the same entities that borrow heavily from the banks. In this paper, I look at the time series dynamics of the ratio of noninterest-to-interest earnings spanning nearly four decades from 1984:Q1 to 2023:Q3 for the USA's FDICinsured commercial banking sector. Although the ratio has fluctuated over the period and risen from the baseline, it does not exhibit any non-stationarity. The presence of unit root cannot be found during the time period studied. In other words, the ratio of noninterest-to-interest earnings in the US commercial banking sector does not show any explosive and unstainable growth. In a nutshell, the rise in the ratio seems to be an outcome of the broader income diversification strategy used by the banks and not necessarily a dramatic change in the business model of US commercial banking industry. [ABSTRACT FROM AUTHOR]

Problem definition: Treating many blood-related diseases requires transplantation of genetically compatible hematopoietic stem cells (HSCs) extracted from the bone marrow (BM) of live donors or the umbilical cord blood (CB) of babies. To facilitate the search for HSCs, institutions known as BM registries collect the details of potential donors and CB banks store units of CB. This paper focuses on the problem of joint optimization of the capacity of these two institutions. Academic/practical relevance: With more than 10 million genetic variants, limited inventory relative to this variety, and random replenishment, BM registry and CB bank compositions are random, interdependent, and change nondeterministically over time. Furthermore, BM and CB differ in their supply, costs, genetic matching criteria, and influences on medical outcomes, giving rise to important tradeoffs such that neither is preferred exclusively to the other. Jointly determining the optimal capacity of both sources is therefore both technically challenging and has immediate policy implications. Methodology: We develop a simulation-based approach to estimate the temporal variation in matching probabilities before incorporating the associated regression parameters into a mathematical model closely matching the research context. Results are contrasted against a simplified mathematical model, highlighting the importance of the dynamic setup. Results: Inventories of 17.5 million registered BM donors and 335,000 CB units are estimated as optimal for the U.S. population under reasonable assumptions. Expanding capacity to these levels would satisfy 33% of the currently unmet demand, increasing the transplantation rate to 98.7% and delivering $770 million of extra social surplus annually. Managerial implications: Rigorous policy analyses are imperative for designing evidence-based, cost-effective policies that deliver societal benefits. To this end, we provide quantitative evidence in support of calls for further expansion of the national BM registry and CB banks in the United States. We also propose annual recruitment targets for BM donors and CB units to maintain the two institutions at their suggested levels. History: This paper has been accepted for the Manufacturing & Service Operations Management Special Section on Responsible Research in Operations Management. Supplemental Material: The e-companion is available at https://doi.org/10.1287/msom.2022.1093. [ABSTRACT FROM AUTHOR]

With the assistance of the corpus analysis tool Wmatrix 4.0, this paper analyzes the semantic categories of the top 10 commercial banks of China and the United States to figure out their social-cultural behavior in the Internet business context. It is discovered that both common and distinctive identities were constructed: the common identities include the professional financial service provider, responsible corporation for employees, and relevant communities with environmental and social consciousness, while the distinctive identities are manifested in the communication strategy, style, and persuasion mode: (1) The Chinese Commercial Banks adopted the proactive strategy for corporate identity construction, are prone to take hierarchical and impersonal communication style, and more focused on the “credibility appeal” and “rational appeal” in persuasion mode; (2) the commercial banks of the United States aremore reactive in the communication strategy, position themselves in short distance with the putative audience in communication style, and conform to the typical “affective appeal” regarding the persuasion mode. From the intercultural perspective, the distinctions are the representation of the peculiar high-context culture and low-context culture based on Hofstede’s cultural dimensions theory. Chinese banks should try to shorten the cultural gap by adopting communication strategy in conformity with the local cultural when going global rather than sticking to the domestic communication strategy. [ABSTRACT FROM AUTHOR]

Is credit card lending by credit unions within the United States primarily a service to members or a profit generating product? This paper examines the impact of credit card lending on the performance of U.S. credit unions from 2000-2017. A panel data approach using fixed effects regression methodology is undertaken to make comparative analyses of credit union performance across several dimensions including the percentage of the firm's assets in credit card loans and percent of members with a credit card. Credit unions are stratified into deciles by size and significant results are found using this methodology. Controlling for delinquencies and charge-offs among other variables, credit card lending significantly increases ROA for both large and small credit unions, but only after the Financial Crisis of 2008, and the establishment of the CARD Act in 2009. Interestingly, the ROA of small credit unions significantly increases with the percentage of members using the institution's credit card. This result suggests that small credit unions would benefit by increasing the penetration of credit cards within their membership base. [ABSTRACT FROM AUTHOR]

Financial innovations and financial instruments such as futures contracts, options, futures have been aimed at reducing risk. Due to government policies and unauthorized companies, instead of using it as a risk management tool, they bring potential risks. These types of activities may lead to shadow banking. Shadow banking activities include securities, money market funds, non-bank financial institutions such as financial companies and hedge funds. In this research, we examine shadow banking and compare common banking with shadow banking in the world. All over the world, shadow banking has reached a very high volume so that the shadow banking system in the United States is growing faster than the European banking system. [ABSTRACT FROM AUTHOR]

This paper quantitatively reveals the meaning of structural breaks for risk management by analyzing US and major European banking sector stocks. Applying newly extended Glosten-Jagannathan-Runkle generalized autoregressive conditional heteroscedasticity models, we supply the following new evidence. First, we find that incorporating structural breaks is always effective in estimating banking stock volatilities. Second, we clarify that structural breaks partially explain the tail fatness of banking stock returns. Third, we find that when incorporating structural breaks, the estimated volatilities more accurately capture their downside risk, proving that structural breaks matter for risk management. Fourth, our news impact curve and model parameter analyses also uncover that when incorporating structural breaks, the asymmetry in volatility responses to return shocks is more accurately captured. This proves why the estimated volatilities by incorporating structural breaks better explain downside risk. In addition, we further reveal that the estimated volatilities obtained through incorporating structural breaks increase sharply during momentous events such as the Lehman crisis, the European debt crisis, Brexit, and the recent COVID-19 crisis. Moreover, we also clarify that the volatility spreads between models with and without structural breaks rise during the Lehman and COVID-19 crises. Finally, based on our findings, we derive many significant and beneficial interpretations, implications, and innovative views for risk management using artificial intelligence in the post-COVID-19 era. [ABSTRACT FROM AUTHOR]

Shadow banks play an important role in the modern financial system and are arguably the source of key vulnerabilities that led to the 2007–2009 financial crisis. I develop a quantitative framework with uncertainty fluctuations and endogenous bank default to study the dynamics of shadow banking. I argue that the increase in asset return uncertainty during the crisis results in a spread spike, making it more costly for shadow banks to roll over their debt in the short-term debt market. As a result, these financial institutions are forced to deleverage, leading to a decrease in credit intermediation. The model is estimated using a bank-level data set of shadow banks in the United States. The parameter estimates imply that uncertainty shocks can explain 72% of asset contraction and 70% of deleveraging in the shadow banking sector. Maturity mismatch and asset fire-sales amplify the impact of the uncertainty shocks. First-moment shocks to bank asset return, financial shocks, or fire-sale cost shocks alone cannot reproduce the large interbank spread spike, dramatic deleveraging, or contraction in the U.S. shadow banking sector during the crisis. The model also allows for policy experiments. I analyze how unconventional monetary policies can help to counter the rise in the interbank spread, thus stabilizing the credit supply. Taking bank moral hazard into consideration, I find that government bailout might be counterproductive as it might result in more aggressive risk-taking among shadow banks, especially when bailout decisions are based on bank characteristics. This paper was accepted by Gustavo Manso, finance. [ABSTRACT FROM AUTHOR]

Using a panel of large U.S. banks, we examine banks' risk‐taking behaviour in response to monetary policy shocks. Our investigation provides support for the presence of a risk‐taking channel: banks' non‐performing loans increase in the medium to long‐run following an expansionary monetary policy shock. We also find that banks' capital structure plays an important role in explaining bank's risk‐taking appetite. Impulse response analysis shows that shocks emanating from larger banks spill over to the rest of the sector but no such effect is observed for smaller banks. These findings are confirmed for banks' Z‐score. [ABSTRACT FROM AUTHOR]

Biodiversity and mitigation banking has become a popular alternative offsetting mechanism, especially for freshwater species and systems. Central to this increase in popularity is the need for sound control mechanisms to ensure offset functionality. Two commonly used mechanisms are monitoring requirements and staggered release of bank credits over time. We used data from 47 banks in the United States, targeting freshwater systems and species. Based on the 47 banks meeting our criteria we showed that control mechanisms generally scale with increased project complexity and that banks release most of their total credit amount within the first 3 years. We further showed that advance credits are common and can increase the potential for credit release without providing tangible ecological benefits. Physical and biological assessment criteria commonly used by banks let us identify three main bank types focusing on connectivity, physical aspects, and habitat and species and their application possibilities and caveats to provide different ecosystem benefits for freshwater species and systems affected by anthropogenic development. [ABSTRACT FROM AUTHOR]

This study examines the relationship between cash flow and financial performance with a sample of 122 American banks covering the period from 2019 to 2022. Panel data analysis is applied in the work. Financial performance is computed as the Return on Assets (ROA) and Return on Equity (ROE). The explanatory variables used are the net cash flow, free cash flow, cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, size of banks, leverage ratio (total liabilities to total assets), liquidity ratio (current assets to current liabilities) and efficiency ratio (total revenue to total assets). The results provide evidence of a negative relationship between financial performance and net cash flow. This is also the case for cash flow from investment and financing activities. On the other hand, the relationship of free cash flow with financial performance is positive. As regards the other explanatory variables, leverage and efficiency are positively related to financial performance [ABSTRACT FROM AUTHOR]

We examine the determinants of firms' 10‐K disclosures on the threat of and exposure to wildfires. We match the location of wildfires in the United States to firms in the same county as the wildfire. We first establish that wildfire disclosure is far from widespread. On average, 6.1% of firms with wildfires in their headquarters county mention wildfire information in their 10‐Ks. Second, we find that the number of wildfire days in a company's headquarters county is a key determinant of wildfire disclosure. The sensitivity of wildfire disclosure to wildfire exposure has also increased in recent years, emanating mainly from firms having experienced wildfires impacting their past operations and in the western states and the utility and banking industries, and from those exhibiting a high level of tangible assets. Third, we find that wildfire exposure has no bearing on stock price, whereas more wildfire‐related disclosure lowers stock price. [ABSTRACT FROM AUTHOR]

The United States is experiencing the most profound and devastating opioid crisis in history, with the number of deaths involving opioids, including prescription and illegal opioids, continuing to climb over the past two decades. This severe public health issue is difficult to combat as opioids remain a crucial treatment for pain, and at the same time, they are also highly addictive. Opioids act on the opioid receptor, which in turn activates its downstream signaling pathway that eventually leads to an analgesic effect. Among the four types of opioid receptors, the µ subtype is primarily responsible for the analgesic cascade. This review describes available 3D structures of the µ opioid receptor in the protein data bank and provides structural insights for the binding of agonists and antagonists to the receptor. Comparative analysis on the atomic details of the binding site in these structures was conducted and distinct binding interactions for agonists, partial agonists, and antagonists were observed. The findings in this article deepen our understanding of the ligand binding activity and shed some light on the development of novel opioid analgesics which may improve the risk benefit balance of existing opioids. [ABSTRACT FROM AUTHOR]

Building and loan associations (B&Ls) financed over half of new houses constructed in the United States during the 1920s but they lost their predominance within the following decades as they were pushed to convert into Savings and Loans (S&Ls). This study examines whether the U.S. government‐insured Postal Savings System attracted funds away from B&Ls precisely when they needed them the most in the Great Depression. Annual town‐ and county‐level data from 1920 through 1935 for three states show that the sudden rise in local postal savings was associated with local downturns in B&Ls. Using a panel vector autoregression, we find that postal savings significantly reduced the amount of money in B&Ls, yet B&Ls had no significant effect on postal savings banks. Alternatively, postal savings had no significant effect on commercial banks. The results suggest that this competitive dynamic prevented B&Ls from rebounding in the mid‐1930s and helped contributed to Great Depression's local real estate lending decline. [ABSTRACT FROM AUTHOR]

Folklore about Operation Choke Point, a regulatory enforcement initiative in the second term of the Obama Administration, continues to come up as a talking point among political conservatives when criticized regulatory agencies or attacking nominees for agency directorships. When several national banks announced in 2018 that they were backing away from the gun industry in various ways (in response to horrific mass shootings), the gun lobby reinvented Operation Choke Point as a conspiracy among bankers to defund gun dealers. This new, more fanciful narrative about Operation Choke Point has become the stated premise for new antiboycott laws that punish banks if they do not lend to the gun industry, such as Texas Senate Bill 19, enacted in 2021. This Article is an attempt to set the record straight. Operation Choke Point was a benign initiative involving a small task force at the Department of Justice and officials from a variety of regulatory agencies that oversee the banking and consumer finance systems. Enforcement actions for consumer fraud targeted unscrupulous payday loan companies engaged in illegal activities, and exhortations from bank regulators reminded executives and compliance officers at financial institutions about their legal duties to screen business customers that presented elevated risks for fraud and money laundering. Backlash erupted when banking lobbyists and industry spokespersons claimed, with only anecdotal evidence, that banks were pressured to close accounts for bank customers who operated lawful businesses that were unpopular with Democrats. The gun industry also entered the fray, with vociferous but unsubstantiated claims that Operation Choke Point was a sinister conspiracy to defund (de-bank) firearm manufacturers and dealers, and was aimed at depriving the citizenry of the Second Amendment rights. Congressional hearings followed, along with investigations and reports by the FDIC’s Office of Inspector General and class action lawsuits against several regulatory agencies, which were dismissed or settled. The Office of Inspector General reports, however, were underwhelming compared to the alarmist rhetoric characterizing the public discourse on the subject. The federal agencies at the center of the firestorm—DOJ and the FDIC— backpedaled on their regulatory guidance to financial institutions and wound down their enforcement activities, and whatever vestiges of Operation Choke Point ceased to exist when President Trump took office. Yet the myths surrounding Operation Choke Point continue to have political salience and real-world adverse impact. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of the current study is to identify variables that, when integrated into the random effects parametric survival model, could be used to forecast the failure rate of small banks in the USA. A bank's income production, efficiency and costs were taken into consideration when choosing the internal components. The breakout of the financial crisis, bank regulations that affect how the banking sector operates and the federal funds rate are the primary external variables. Design/methodology/approach: This study uses the random effects parametric survival model to investigate the causes of small bank failures in the USA from 1996 to 2019. The study identifies several characteristics that failed banks frequently display. The main indications that may help to identify the elevated risk of small bank failures include the ROA, the cost of funds, the ratio of noninterest income to assets, the ratio of loan and lease losses to assets, noninterest expenses and core capital (leverage) ratio to assets. Economic disruptions, financial market distress and industry-based regulatory redress by the government exacerbate the financial distress borne by small banks. Findings: The study revealed that a failed bank typically demonstrates a certain number of characteristics. The key factors that might assist identify which bank would be most likely to collapse include the cost of funding earning assets, the yield on earning assets, core Capital (leverage) ratio to assets, loan and lease loss provision to assets, noninterest expense and noninterest income to assets. Additionally, when a financial crisis occurs or the government changes regulations that could raise the cost of compliance for small banks, the likelihood that a bank will fail increases. Originality/value: Models based on survival theories are more suitable when the authors examine bank failure as a unique event that happens gradually. The authors use a random effects parametric survival model to investigate the internal and external factors that may influence prospective small bank failure. This model has been developed and used in the medicinal research field. The authors do not choose the Cox proportional hazards model because it does not work well with panel data. [ABSTRACT FROM AUTHOR]

Prior empirical research found that in the United States, rural community banks earn higher profits than their metropolitan counterparts and have lower risk loan portfolios as well. Investigating community bank failures since 2000 we find support for the competition-fragility view that increased competition in banking correlates with an increase in bank failures based on the finding that preponderance of US bank failures are community banks in metropolitan areas where they face direct competition from multiple large banks. This study tests seven hypotheses using a nationwide survey of community bankers. The results indicate metropolitan bankers perceive an intense competitive environment where it is difficult to get their message to potential new clients while also losing their most creditworthy business clients to mega-banks. Bankers across geographic regions suggest that economies of scale in technology and regulatory compliance drive merger and acquisition activity and it will continue despite the shocking reduction of over 70% of banks since deregulation through mergers, acquisitions, and failures. Prior research also suggests that larger banks extend less credit to small businesses. If true, fewer metropolitan community banks will further restrict the bank credit available to new businesses and existing microenterprises, especially in the metropolitan areas where 86% of the US population now live. This study provides additional support for the position that US community banks are not a homogenous group and studies need to consider the geographic scope of operation. Based on these results and the relevant literature, we provide suggestions for community bankers, entrepreneurs, regulators, and future research. [ABSTRACT FROM AUTHOR]

Over the past decade, a consensus has emerged among academics and policy makers that climate change could threaten the stability of banks, insurers, and the broader financial system. In response, regulators from around the world have begun implementing policies to mitigate emerging climate risks in the financial sector. The United States, however, lags significantly behind other countries in addressing such risks. This article argues that the United States' sluggishness in responding to climate‐related financial risk is problematic because the U.S. banking system is uniquely susceptible to climate change. The United States' vulnerability stems, in part, from a little‐known statutory provision that prohibits U.S. regulators from relying on external credit ratings in bank capital requirements. Because of this deviation from internationally accepted capital standards, when a credit rating agency downgrades a "dirty" company, U.S. banks that lend to that company need not compensate by maintaining a bigger capital cushion. Over time, this dynamic will likely incentivize "dirty" companies to borrow more from U.S. banks, intensifying the U.S. banking system's exposure to climate risks. This article contends that the United States must overcome this unusual weakness by taking bold steps to safeguard the domestic financial system from the climate crisis. [ABSTRACT FROM AUTHOR]

Banks, life insurers, and commercial mortgage‐backed security (CMBS) lenders originate the vast majority of U.S. commercial real estate (CRE) loans. While these lenders compete in the same market, they differ in how they are funded and regulated, and therefore, specialize in loans with different characteristics. We harmonize loan‐level data across the lenders and review how their CRE portfolios differ. We then exploit cross‐sectional differences in loan portfolios to estimate a simple model of frictional substitution across lender types. The substitution patterns in the model match well the observed shift away from CMBS when spreads rose in late 2015 and early 2016. Counterfactuals suggest that the ability to substitute to other lenders offsets about 20% of the effect of a 25 basis point CMBS supply shock. [ABSTRACT FROM AUTHOR]

Exploiting detailed disclosures mandated by Accounting Standard Codification (ASC) 820, we provide evidence for the return relevance of Level 3 fair value remeasurements for a comprehensive sample of U.S. listed banks. We find that Level 3 remeasurements recognized in earnings are more return relevant than those recognized in other comprehensive income (OCI). Our results suggest that Level 3 remeasurements in OCI partially reflect transitory illiquidity discounts that are less relevant when banks have the ability to hold the underlying assets. The regulatory capital treatment of OCI also affects the return relevance of Level 3 remeasurements in OCI. Importantly, we find no differences in the return relevance of realized versus unrealized Level 3 remeasurements in earnings, allaying concerns that investors perceive unrealized Level 3 remeasurements of lesser quality. Overall, our findings support the usefulness of the segregated disclosures of Level 3 fair value remeasurements. Data Availability: Data are available from the public sources cited in the text. [ABSTRACT FROM AUTHOR]

This study demonstrates that, among large U.S. bank holding companies (BHCs), the largest ones are exposed to more operational risk. Specifically, they have higher operational losses per dollar of total assets, a result largely driven by the BHCs' failure to meet professional obligations to clients and/or faulty product design. Operational risk at the largest institutions is also found to: (i) be persistent, (ii) have a countercyclical component, and (iii) materialize through more frequent tail risk events. We illustrate three plausible channels linking BHC size and operational risk—institutional complexity, moral hazard incentives arising from "too‐big‐to‐fail," and innovation. [ABSTRACT FROM AUTHOR]

The first 20 years of the twenty-first century have presented U.S. banks with three recessions, long periods of very low interest rates, and increased regulation. The number of commercial banks operating in the United States declined by 51 percent during this period. This article examines the performance of U.S. commercial banks from 2000 through 2020. An overall picture is provided by examining the evolution of assets, deposits, loans, and other financial characteristics over the period. In addition, new estimates of technical inefficiency are provided, offering additional insight into banks' performance during the recent difficult years. [ABSTRACT FROM AUTHOR]

The number of community banks in the United States has been declining steadily for decades, as has the share of total industry assets held by these banks. Because community banks play an outsized role in originating loans to small businesses, a continued decline in their numbers and asset holdings could constrain entrepreneurs' access to credit--and, accordingly, constrain growth in the overall economy. One possible explanation for the declining number of community banks is that larger banks have benefitted from economies of scale and outpaced them in efficiency. Stefan Jacewitz examines how the efficiency of community banks has changed since the 2008 global financial crisis. He finds that community banks have in fact seen substantial improvements in efficiency, partially attributable to a relative decline in their brick-andmortar expenses. His results suggest that community banks have made and continue to make meaningful gains even as the banking landscape evolves. [ABSTRACT FROM AUTHOR]

The article explores the developments in laws governing the financial technology services companies in the U.S. Topics discussed include the business model that is commonly used by financial technology companies which involves partnerships with depository institutions, the joint resolution signed by U.S. President Joe Biden that repeals the Office of the Comptroller of the Currency's True Lender Rule pursuant to the Congressional Review Act, and discord over the True Lender Rule.

Though online banking has become more pervasive in U.S. society, little research has examined how different generational cohorts perceive and use online banking. This study examines differences in online banking perceptions and intentions across three generational cohorts in the U.S.: Silent and G.I. generation (SGI) (born 1945 or earlier), older Boomers (1946–1954), and Millennials (1977–1992). Guided by the Technology Acceptance Model and Protection Motivation Theory, it tests a model that identifies factors that influence each generation's acceptance and use of online banking. An online survey of 558 U.S. MTurk workers within three generational cohorts provided data for this study. Findings showed that coping appraisals (i.e., coping self-efficacy and response efficacy) were positive predictors of online banking intentions via reduced barrier perceptions and increased trust perceptions for all ages. Nevertheless, threat appraisals were not negative predictors of online banking intentions via any online banking perceptions. Results also identified generational differences by showing that coping appraisals only increased online banking intentions via enhanced benefit perceptions for Boomers and Millennials, not SGIs. Furthermore, benefit perceptions mattered most to Millennials, followed by Boomers, and did not influence online banking intentions for SGIs. Trust mattered most to SGIs, followed by Boomers, and did not matter to Millennials. This study contributes to our understanding of factors that can help bring older consumers onboard with online banking compared to younger consumers. [ABSTRACT FROM AUTHOR]

It has long been assumed that marketisation would undermine banks, a claim reflected in the common opposition of market and bank-based finance. But as recent research shows, some banks have flourished in the marketized environment of financialisation. I argue the reason they have come to dominate financialisation stems from a revolution in funding that began in the 1960s with the rise of liability management. This practice enabled some banks to dramatically leverage their operations and expand their balance sheet. The new funding practice also impacted the business model of US banks fuelling a move from lending to trading. As I show, this revolution in finance shifted the power away from lenders and towards leveraging financial agents that focused on capturing assets through predatorial strategies. [ABSTRACT FROM AUTHOR]

Over the past decade, due in part to the global economic crisis, a significant part of the bank branches have been closed in the European banking system, but in Hungary this proportion has been significantly higher than the European average. Therefore, the aim of the present study is to explore what aspects of commercial banks are taken into account when deciding where to be present within bank branches. This will also reveal the spatial dimension of public access to financial services. The present study seeks to answer the question of which socio-economic factors and in what form they affect the spatial structure of bank branches. The settlement-level examination can also provide additional indication of which settlements may be affected by further bank branch closures. Linear regression based on Ordinary Least Squares (OLS) parameter estimation was used to explore the factors influencing the location of bank branches. In addition, the possible clustering of bank branches was observed, i.e., whether spatial autocorrelation was present at certain stages of the analysis. Geographically Weighted Regression (GWR) was also estimated in the present study. Based on the results of the research, the resident population, the proportion of enterprises per capita, the average income, the number of neighbouring bank branches and the type of settlement all proved to be significant factors that may encourage decision-makers to establish a bank branch. [ABSTRACT FROM AUTHOR]