137 results
Search Results
2. Yours, mine, or ours: Does bank account status in early marriage affect financial behavior and financial satisfaction?
- Author
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Sorgente, Angela, Lanz, Margherita, Tagliabue, Semira, Wilmarth, Melissa J., Archuleta, Kristy L., Yorgason, Jeremy, and James, Spencer
- Subjects
- *
MARRIAGE , *ECONOMIC status , *BANKING industry , *CONCEPTUAL structures , *FINANCIAL stress , *DESCRIPTIVE statistics , *CHI-squared test , *FINANCIAL management , *LONGITUDINAL method - Abstract
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]
- Published
- 2023
- Full Text
- View/download PDF
3. REGULATING THE JACKALS OF THE MONETARY WORLD: BANKING AND CONSTITUTIONAL REFORM IN THE ANTEBELLUM NORTHWEST.
- Author
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SIDDALI, SILVANA R.
- Subjects
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BANKING industry , *PAPER money , *FINANCIAL crises , *LAND tenure , *HISTORY of constitutional reform , *CONSTITUTIONAL conventions , *DEMOCRACY , *TERRITORIAL expansion of the United States , *HISTORY , *NINETEENTH century - Abstract
This article describes the fights over banks and paper money in state constitutional conventions in the antebellum Northwest. These debates played a central role in the development of popular self-government and democracy in the region. Citizens demanded fundamental constitutional reforms that would circumvent irresponsible legislatures and thwart undemocratic financial institutions. [ABSTRACT FROM AUTHOR]
- Published
- 2013
- Full Text
- View/download PDF
4. Discovered!: The First Engraving of an Audubon Bird.
- Author
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PECK, ROBERT M. and NEWMAN, ERIC P.
- Subjects
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PAPER money design , *BIRDS in art , *GROUSE , *BANK notes , *BANKING industry , *19TH century engraving , *COPPERPLATE printing , *ANTEBELLUM Period (U.S.) , *HISTORIOGRAPHY - Abstract
The article discusses examples of birds in art created for bank notes by American artist and naturalist John James Audubon (1785-1851), first referred to in Audubon's diary on July 12, 1824. The authors refer to the historiography of Audubon scholars such as Alice Ford, William H. Dillistin, and Richard Rhodes who began searching for Audubon's first engraved illustration of a bird designed for American paper money in the 1950s. The diary entry refers to a grouse created for Gideon Fairman (1774-1827), a principal of Fairman, Draper, Underwood & Co. of Philadelphia, Pennsylvania (1823-1830), an engraving firm specializing in the printing of bank notes for financial institutions. The authors uncovered a specimen sheet for the company featuring a running grouse designed by Audubon.
- Published
- 2010
- Full Text
- View/download PDF
5. The United States Monopolization of Bank Note Production: Politics, Government, and the Greenback, 1862–1878.
- Author
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Noll, Franklin
- Subjects
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BANK notes , *PAPER money , *MONEY , *BANKING industry , *GREENBACKS (Money) , *AMERICAN Civil War, 1861-1865 , *NINETEENTH century , *ECONOMICS , *HISTORY of money ,UNITED States politics & government - Abstract
Between 1862 and 1878, the view of the United States government towards the nation's money was transformed. Early in the Civil War, the government got into the bank note printing business out of necessity, printing and issuing the first-ever federal currency. Over the following years, debates raged whether the national currency should be printed privately or by the government's bank note printer, the United States Bureau of Engraving and Printing (BEP). Matters came to a head in 1878 when Congress debated the future of the BEP. That year, in a radical departure from the past, Congress gave the Bureau of Engraving and Printing a monopoly on the production of currency, forever changing the role of the government in the nation's economy. Money, be it in the form of coin or currency, was now the exclusive province of the government – not private banks or bank note companies. This change was the result of a rare consensus between Democrats and Republicans and between the forces of the antimonopoly tradition, Greenbackism, and hard money. For various reasons, they were unanimous in believing that the government, especially Congress, should be in control of those matters affecting the monetary affairs of the country. [ABSTRACT FROM PUBLISHER]
- Published
- 2012
- Full Text
- View/download PDF
6. Banks and State Public Finance in the New Republic: The United States, 1790-1860.
- Author
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Sylla, Richard, Legler, John B., and Wallis, John J.
- Subjects
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BANKING industry , *PUBLIC finance , *PAPER money , *U.S. states - Abstract
Explores how the banks chartered by states in the United States (U.S.) provide a source of flexibility in state public finance following the decision of the U.S. Constitution to remove the states' power to issue paper money. Role of investment earnings and tax revenues derived from banks in state public finance; Importance of state-bank relationships to public finance.
- Published
- 1987
- Full Text
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7. Power in the U.S. political economy: A network analysis.
- Author
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Malik, Nishant, Spencer, David, and Bui, Quang Neo
- Subjects
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PRACTICAL politics , *INFERENTIAL statistics , *ORGANIZATIONAL structure , *BANKING industry , *ECONOMICS , *DESCRIPTIVE statistics , *DATA analysis , *FINANCIAL management , *POWER (Social sciences) - Abstract
Many features of the U.S. political economy arise from the interactions between large political and economic institutions, and yet we know little about the nature of their interactions and the power distribution between these institutions. In this paper, we present a detailed analysis of networks of U.S.‐based organizations, where edges represent three different kinds of relationships, namely owner–owned (ownerships), donor–donee (donations), and service provider–payee (transactions). Our findings suggest that in the ownerships network, the financial organizations form the core, and banking organizations hold strategic locations in the network. In the transactions network, the government organizations and agencies form the core, and defense‐related organizations form the backbone. In contrast, with the donations network, no specific domain of organizations forms either the core or the backbone. [ABSTRACT FROM AUTHOR]
- Published
- 2021
- Full Text
- View/download PDF
8. Fed Affirms Support of Commercial-Paper Market.
- Author
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Shrivastava, Anusha
- Subjects
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COMMERCIAL paper issues , *PROMISSORY notes , *BANKING industry , *CAPITAL market - Abstract
This article reports on the move by the U.S. Federal Reserve to reaffirm its support for the commercial paper market amid the sharp decline in demand in 2009. It explains that commercial paper serves companies that are looking for short-term financing avenues. It says that for the week ended June 26, 2009 commercial paper shrank to record low of $1.5 trillion based on seasonal adjustment. The Federal Reserve assured markets that it will commit to stabilizing commercial paper market until February 2010.
- Published
- 2009
9. Commercial Paper Falls To a Five-Year Low.
- Author
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Shrivastava, Anusha
- Subjects
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COMMERCIAL paper issues , *BANKING industry , *MONEY market , *MONEY supply - Abstract
This article reports on the decline of the commercial paper market in the U.S. by $81.1 billion in the week ended May 14, 2009. The decline is the lowest level in five years based on data from the Federal Reserve Board. The short-term market for commercial paper stands at $1.3 trillion as of May 14, 2009.
- Published
- 2009
10. Fed's Backing of Commercial Paper Draws Slight Initial Response.
- Author
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NATARAJAN, PRABHA and SHRIVASTAVA, ANUSHA
- Subjects
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COMMERCIAL paper issues , *BANKING industry , *ASSET backed financing , *MONEY market funds , *INVESTORS - Abstract
The article reports on the U.S. Federal Reserve support for the commercial-paper market, which according to investors, would result to drop of the overnight borrowing rates in the commercial-paper market and asset-backed commercial-paper market in the U.S. in 2008. It notes that among other areas affected are the money-market funds, which led to borrowing because few investors where willing to allow longer term debt.
- Published
- 2008
11. Banks' Borrowing Bolsters Commercial-Paper Market.
- Author
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Saha-Bubna, Aparajita and Reed, Danielle
- Subjects
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COMMERCIAL paper issues , *BANKING industry , *ASSET backed financing , *SECURITIES industry - Abstract
The article reports on the effects of U.S. banks' borrowing on the commercial-paper market. According to the authors, the announcements made by the major Wall Street banks that they were approaching the Federal Reserve for short-term funding helped the country's asset-backed commercial-paper market. Sean Simko of SEI assured that the market is fixed with assets, like credit-card debt and home loans.
- Published
- 2007
12. Commercial Paper Isn't As Healthy As It Seems.
- Author
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SHRIVASTAVA, ANUSHA and Rappaport, Liz
- Subjects
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COMMERCIAL paper issues , *PROMISSORY notes , *MONEY market funds , *MUTUAL funds , *BANKING industry - Abstract
The article reports that the commercial paper market in the U.S. has grown for the eighth straight week to 1.3 trillion U.S. dollars. The gain is largely attributed to activities of European banks in the market. Crane Data revealed that majority of taxable money-market mutual funds have yields of less than 0.1 percent.
- Published
- 2009
13. Holism, Consequentialism, and Economic Crises.
- Author
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Lange, Margaret Meek
- Subjects
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BANKING industry , *GOVERNMENT guaranty of loans , *BUSINESS cycles ,UNITED States politics & government - Abstract
A theory of economic justice addresses those ground rules of a self-sufficient social system that dictate how property is acquired and transferred. Appealing to a broad criterion or set of criteria, such a theory describes and justifies what the rules ought to be. In this paper, I consider how conceptual features of a theory of economic justice logically determine its approach to economic crises. First, the paper introduces a number of classificatory terms. It distinguishes between deontological and consequentialist theories of economic justice. Then it defines holism as a continuous dimension-theories of economic justice are said to be more or less holistic--and argues that consequentialist theories of economic justice are somewhat holistic. In the second part, the paper turns to two examples of consequentialist theories of economic justice, those of Hegel and John Rawls. It shows that economic crises are within the scope of Hegel's and Rawls's theories, and then considers what the theorists actually say about economic crises. In the third part, using Rawls and Hegel as examples, the paper argues that consequentialist theories are capable in principle of justifying extraordinary property transfers in crisis situations, such as the bailouts made to American banks by the American government during the financial crisis of 2008. So a consequentialist theory could reconcile us to those transfers. But such theories, more than deontological ones, could equally well lead us to call for widespread structural change. [ABSTRACT FROM AUTHOR]
- Published
- 2010
14. Financing a Tragedy of the Commons?: Microfinance and Sustainable Environmental Development in Uganda.
- Author
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Goldsworthy, Heather
- Subjects
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MICROFINANCE , *INTERNATIONAL economic assistance , *BANKING industry , *ECONOMIC development , *NONGOVERNMENTAL organizations - Abstract
In recent years microfinance has garnered growing attention in the government, banking, and non-governmental arenas as an alternative to largely unsuccessful state-run and multilateral development and aid programs. Proponents of microfinance suggest the industry is well-equipped to assist many of the worldâs over four billion poor. However, there are still many questions about the impact of microfinance on the quality of life for the poor, and much debate about what âsolidâ evidence there is to support it as a contextually relevant form of economic development. The research presented in this paper focuses on one component of community sustainability and quality of life that is inextricably linked to poverty: the natural environment. Environmental conditions are of paramount importance to many of the worldâs poor due to their reliance on natural resources for both subsistence and income, yet they remain absent from microfinance theory and practice which often focuses on broad applicability rather than locally-informed interventions. Logically and intuitively, there is much potential for microfinanced enterprises to incorporate the local natural environment either as a source for inputs or a sink for outputs. This paper explores the relationship between microfinance-led poverty alleviation and environmental sustainability based on field work with microfinance and sustainable development NGOs in the US and Jinga, Uganda. It uses contextual analysis gauge the potential to create an environmentally-informed microfinance intervention to improve quality of life for the poor. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]
- Published
- 2008
15. The lead-lag relationship between US industry-level credit and stock markets.
- Author
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Shahzad, Syed Jawad Hussain, Nor, Safwan Mohd, Sanusi, Nur Azura, and Kumar, Ronald Ravinesh
- Subjects
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BOND market , *STOCK exchanges , *ARBITRAGE , *GRANGER causality test , *SPREAD (Finance) , *CREDIT default swaps , *BANKING industry - Abstract
Purpose The purpose of this paper is to identify the arbitrage opportunities between US industry-level credit and stock markets with a focus on dynamic lead-lag relationships given that these markets involve heterogeneous agents operating over various time horizons.Design/methodology/approach The authors use daily data of 11 US industries stock markets and their credit counterparts to model the dynamic dependence and casual nexuses using time-frequency approach, namely, wavelet squared coherence (WTC).Findings The WTC estimation results show that credit and stock markets are out of phase (counter cyclical) and stock markets lead their credit counterparts. The coherence between two markets increases during financial crises. The banks (utilities) industry credit and stock markets have relatively high (low) dependence.Research limitations/implications The casual nexuses between stock and credit markets have multilateral dimensions. Greater interest in examining the relationship between stock markets and credit default swap (CDS) spreads emerged as an important albeit a complex area of research, and gained prominence especially at the onset and following the global financial crises of 2007-2008 which clearly showed that the positive views of CDSs contribution in creating a resilient and efficient financial sector was nothing further from the truth.Practical implications The arbitrage and hedging opportunities between stock and credit markets are industry dependent and vary over investment time horizons. The utilities industry seems attractive for the investment with the objective to exploit arbitrage, but not for hedging.Originality/value The paper, for the first time, employs time-frequency approach to assess the arbitrage opportunities between US industry-level credit and stock markets. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
16. New York and the Politics of Central Banks, 1781 to the Federal Reserve Act.
- Author
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Moen, Jon R. and Tallman, Ellis W.
- Subjects
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CENTRAL banking industry , *BANKING industry , *PUBLIC finance laws - Abstract
The paper provides a brief history of central banking institutions in the United States. Specifically, the authors highlight the role of New York banking interests in the affecting legislations affecting the creation or expiration of central banking institutions. In our previous research we have detected that New York City banking entities usually exert substantial influence on the legislation, greater than their large proportion of United States' banking resources. The authors describe how this influence affected the success or failure of central banking movements in the United States, and the authors use this evidence to support their arguments regarding the influence of New York City bankers on the legislative efforts that culminated in the creation of the Federal Reserve System. The paper argues that successful central banking movements in the United States owed much to the influence of New York City banking interests. [ABSTRACT FROM AUTHOR]
- Published
- 2003
17. Credit Thaw Is Spurring Appetite For Bank IOUs.
- Author
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Mollenkamp, Carrick, Shah, Neil, and Fidler, Stephen
- Subjects
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COMMERCIAL paper issues , *NEGOTIABLE instruments , *LIBOR , *INTEREST rates , *BANKING industry - Abstract
The article discusses signs of improving credit conditions. Demand for commercial paper issued by both U.S. and European banks has increased substantially, while the three-month dollar Libor has fallen to a record low. However, some banks are hoarding funds received for commercial paper, thus undermining government efforts to promote liquidity.
- Published
- 2009
18. Variable selection in proportional hazards cure model with time-varying covariates, application to US bank failures.
- Author
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Beretta, Alessandro and Heuchenne, Cédric
- Subjects
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BANK failures , *SURVIVAL analysis (Biometry) , *MERGERS & acquisitions , *BANKING industry - Abstract
From a survival analysis perspective, bank failure data are often characterized by small default rates and heavy censoring. This empirical evidence can be explained by the existence of a subpopulation of banks likely immune from bankruptcy. In this regard, we use a mixture cure model to separate the factors with an influence on the susceptibility to default from the ones affecting the survival time of susceptible banks. In this paper, we extend a semi-parametric proportional hazards cure model to time-varying covariates and we propose a variable selection technique based on its penalized likelihood. By means of a simulation study, we show how this technique performs reasonably well. Finally, we illustrate an application to commercial bank failures in the United States over the period 2006–2016. [ABSTRACT FROM AUTHOR]
- Published
- 2019
- Full Text
- View/download PDF
19. Comparative analysis of banking systems: A structure, agency and institution-based view.
- Author
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Bakir, Caner
- Subjects
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BANKING industry , *POLITICIANS , *COMPARATIVE studies - Abstract
Why was it that the banking system of Australia was more resilient than virtually any other OECD country'? Why the banks in these countries did not take on the increased degree of risk that led to the downfall of so many well-known institutions in the US, the UK and Europe"1 Were Australian bankers, regulators, politicians and investors smarter than their counterparts in the US, the UK and Europe? This paper argues that a more nuanced understanding of structures, institutions and agencies and their interaction can inform research into a specific area, namely the comparative analysis of banking systems. [ABSTRACT FROM AUTHOR]
- Published
- 2011
20. Entry Barriers, Competition, and Technology Adoption.
- Author
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Lei Fang
- Subjects
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CREDIT ratings , *SMALL business loans , *SMALL business , *COMMUNITY banks , *BANKING industry , *BANK loans , *CONSUMER credit , *FINANCIAL management - Abstract
The literature has documented a positive relationship between the use of credit scoring for small business loans and small business credit availability, broadly defined. However, this literature is hampered by the fact that all of the studies are based on a single 1998 survey of the very largest U.S. banking organizations. This paper addresses a number of deficiencies in the extant literature by employing data from a new survey on the use of credit scoring in small business lending, primarily by community banks. The survey evidence suggests that the use of credit scores in small business lending by community banks is surprisingly widespread. Moreover, the scores employed tend to be the consumer credit scores of the small business owners rather than the more encompassing small business credit scores that include data on the firms as well as on the owners. Our empirical analysis suggests that credit scoring is associated with increased small business lending after a learning period, with no material change in the quality of the loan portfolio. However, these quantity and quality results appear to vary depending on the way in which credit scores are implemented in the underwriting process. [ABSTRACT FROM AUTHOR]
- Published
- 2009
21. The Federal Home Loan Bank System: The Lender of Next-to-Last Resort?
- Author
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Ashcraft, Adam, Bech, Morten L., and Frame, W. Scott
- Subjects
- *
FEDERAL home loan banks , *MORTGAGE loans , *FINANCIAL crises , *LIQUIDITY (Economics) , *BANKING industry , *DISCOUNT prices , *HOME prices , *HOUSING market - Abstract
The Federal Home Loan Bank (FHLB) System is a large, complex, and understudied government-sponsored liquidity facility that currently has more than $1 trillion in secured loans outstanding, mostly to commercial banks and thrifts. This paper first documents the significant role played by the FHLB System at the outset of the ongoing financial crisis and then provides evidence about the uses of these funds by their bank and thrift members. We then identify the trade-offs faced by FHLB member-borrowers when choosing between accessing the FHLB System or the Federal Reserve's discount window during the crisis. We conclude by describing the fragmented U.S. lender-of-last-resort framework and finding that additional clarity about the respective roles of the various liquidity facilities would be helpful. [ABSTRACT FROM AUTHOR]
- Published
- 2009
22. Creating the "Supreme Court of Finance": U.S. State-building and the Judicial Roots of the Federal Reserve Board.
- Author
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Okayama, Hiroshi
- Subjects
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BANKING industry , *CENTRAL banking industry , *INTERSTATE commerce - Abstract
This paper explains why the Federal Reserve Board as a fully government-controlled institution regulating regional reserve banks was accepted by U.S. policy makers at its founding, when the central bank manned by experienced bankers was the dominant organizational form of central-banking system. It is demonstrated that the FRB gained legitimacy by being associated with certain existing government institutions that people held in high esteem, namely the Supreme Court and the Interstate Commerce Commission (ICC). The link between the FRB and the two institutions became widely acknowledged, and also the connection worked in favor of the supporters of the Wilson administration's federal reserve bill. In addition, it is shown that the combination of the three institutions was not an ad hoc one, but that it constituted part of a distinct tradition of state building in the United States that has its roots in the judiciary. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]
- Published
- 2008
23. The Predictive Power of the Senior Loan Officer Survey: Do Lending Officers Know Anything Special?
- Author
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Cunningham, Thomas J.
- Subjects
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LOAN officers , *LOANS , *GROSS domestic product , *ECONOMIC indicators , *ECONOMIC forecasting , *BANKERS , *INVESTORS , *SURVEYS , *BANKING industry - Abstract
The answer to this question is yes, but not that much about banks. Every quarter the Federal Reserve System surveys a panel of senior loan officers at major banks across the nation. The results of this survey have been found in previous studies to provide useful information in predicting gross domestic product. This paper extends that work, finding that sector-specific survey results are relevant for predicting real activity in those sectors but, strangely, that the informative power of the survey results only marginally extend to various measures of performance in the banking sector. [ABSTRACT FROM AUTHOR]
- Published
- 2006
24. Subordinated Debt and Prompt Corrective Regulatory Action.
- Author
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Francis, Bill, Hasan, Iftekhar, and Hunter, Delroy
- Subjects
- *
DEBT , *BANKING industry , *RISK - Abstract
Several recent studies have recommended greater reliance on subordinated debt as a tool to discipline bank risk taking. Some of these proposals recommend using subordinated debt yield spreads as additional triggers for supervisory discipline under prompt corrective action (PCA), action that is currently prompted by capital adequacy measures. This paper provides a theoretical model describing how use of a second market-measure of bank risk, in addition to the supervisors' own internalized information, could improve bank discipline. The authors then empirically evaluate the implications of the model. The evidence suggests that subordinated debt spreads dominate the current capital measures used to trigger PCA and consideration should be given to using spreads to complement supervisory discipline. The evidence also suggests that spreads over corporate bonds may be preferred to using spreads over U.S. Treasuries. [ABSTRACT FROM AUTHOR]
- Published
- 2002
25. The Effect of Credit Scoring on Small Business Lending in Low- and Moderate-Income Areas.
- Author
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Frame, W. Scott, Padhi, Michael, and Woosley, Lynn
- Subjects
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CREDIT scoring systems , *BANKING industry , *INCOME , *SMALL business - Abstract
Abstract: This paper empirically examines the effect of the use of credit scoring by large banking organizations on small business lending in low- and moderate-income (LMI) areas. Using census tract level data for the southeastern United States, the authors estimate that credit scoring increases small business lending by $16.4 million per LMI area served. Furthermore, this effect is almost 2.5 times larger than that estimated for higher income census tracts ($6.8 million). The authors also find that credit scoring increases the probability that a large banking organization will make small business loans in a given census tract. The change in this probability is 3.8 percent for LMI areas and 1.7 percent for higher income areas. These findings suggest that credit scoring reduces asymmetric information problems for borrowers and lenders and that this is particularly important for LMI areas, which lenders may have historically bypassed because of their questionable economic health. JEL classification: G2, O1, O3, E5 Key words: credit scoring, small business lending, low-income, Community Reinvestment Act [ABSTRACT FROM AUTHOR]
- Published
- 2001
26. The preponderant causes of the USA banking crisis 2007–08
- Author
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Pol, Eduardo
- Subjects
- *
SOCIAL dominance , *CAUSATION (Philosophy) , *BANKING industry , *GLOBAL Financial Crisis, 2008-2009 , *SOCIOECONOMICS , *METHODOLOGY , *SOCIOLOGY , *FINANCIAL crises - Abstract
Abstract: Scientific research on the banking crisis 2007–08 has answered many important questions according to generally accepted methodological standards. However, there remains at least one outstanding question that has not been answered with methodological accuracy: What caused the severe USA banking crisis 2007–08? To address this question the paper uses a counterfactual definition of ‘cause,’ distinguishes between separable and non-separable causes, and employs a well-posed methodology for the causation analysis of singular events. In addition, first causes and preponderant causes are distinguished. The main result of this paper is that the preponderant causes of the banking crisis 2007–08 were securitization and ignorance. [Copyright &y& Elsevier]
- Published
- 2012
- Full Text
- View/download PDF
27. The Effectiveness of Unconventional Monetary Policy: The Term Auction Facility.
- Author
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Thornton, Daniel L.
- Subjects
- *
MONETARY policy , *BANKING industry , *LIBOR , *FINANCIAL crises - Abstract
This paper investigates the effectiveness of one of the Federal Reserve's unconventional monetary policy tools, the term auction facility (TAF). At issue is whether the TAF reduced the spread between the London interbank offered rate (LIBOR) rates and equivalent-term Treasury rates by reducing the liquidity premium embedded in LIBOR rates. This paper suggests that rather than reducing the liquidity premium in LIBOR rates, the announcement of the TAF increased the risk premium in financial and other bond rates because market participants interpreted the announcement by the Fed and other central banks as a sign that the financial crisis was worse than previously thought. Evidence is presented that supports this hypothesis. [ABSTRACT FROM AUTHOR]
- Published
- 2011
- Full Text
- View/download PDF
28. Elite knowledges: framing risk and the geographies of credit.
- Author
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Wainwright, Thomas
- Subjects
- *
BANKING industry , *GEOGRAPHY , *SOCIAL interaction - Abstract
This paper examines the history of credit scoring in Britain, and how this technology was imported from the US and adapted by the British retail banking sector. It seeks to highlight the elites who develop the social codes embedded within credit scoring software, to offer insight into the complex techno-economic networks that produce the geographies of financial inclusion, exclusion, and differential risk pricing. It is argued that the scientific status of these systems is questionable, due to the social interactions involved within the statistical modelling. Finally, the paper suggests that the spaces of credit are fluid, based upon the frequent social recalibrations of these models [ABSTRACT FROM AUTHOR]
- Published
- 2011
- Full Text
- View/download PDF
29. External Linkages and Contagion Risk in Irish Banks.
- Author
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Duggar, Elena and Mitra, Srobona
- Subjects
- *
BANKING industry , *FINANCIAL institutions , *NATIONAL currencies - Abstract
Increasing financial integration makes the assessment of cross-country linkages crucial for effective financial surveillance. This paper estimates contagion risk between large Irish banks and European and U.S. banks during 1994–2005, using distance-to-default measures and the methodology of extreme value theory. Employing an ordered logit model, and controlling for Ireland-specific and global shocks, we find evidence of significant contagion risk coming from the United Kingdom, the United States, and the Netherlands toward Ireland. We also find that patterns of contagion to Irish banks have shifted over time, coming from the United Kingdom in the pre-euro period and from the United States in the post-2001 period. [ABSTRACT FROM AUTHOR]
- Published
- 2009
- Full Text
- View/download PDF
30. Why do institutions matter? Global competitiveness and the politics of policies in Latin America.
- Author
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Charnock, Greig
- Subjects
- *
INSTITUTIONALISM (Religion) , *REFORMS , *BANKING industry , *POLITICAL leadership - Abstract
This paper subjects to critique the 'new institutionalism' in development policy literature. It highlights the way 'second generation' institutional reform processes in the Latin American region are to be engineered through a politics of global competitiveness while their success is to be gauged, first and foremost, in capital-functional terms. The paper culminates in the focused critique of an Inter-American Bank flagship report. The Politics of Policies, which demonstrates the new institutionalism's prejudice against any form of political leadership that does not seek to guarantee a competitive investment climate as well as an uncompromising commitment to a politics of global competitiveness. [ABSTRACT FROM AUTHOR]
- Published
- 2009
- Full Text
- View/download PDF
31. Mergers and acquisitions as a human resource strategy Evidence from US banking firms.
- Author
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Bou-Wen Lin, Shih-Chang Hung, and Po-Chien Li
- Subjects
- *
MERGERS & acquisitions , *BANKING industry , *HUMAN capital , *PERSONNEL management , *BUSINESS planning - Abstract
Purpose - This paper investigates how a firm's human resource capability can affect the deployment and effectiveness of corporate mergers and acquisitions strategy. Design/methodology/approach - Mergers and acquisitions (M&A) is treated as a long-term strategic orientation based on human resource advantage rather than a tactic to pursue short-term goals. Using a sample of 267 US banking firms, the main and interaction effects of M&A intensity, HR capability, and in-state propensity on four firm performance measures were examined. Findings - The findings confirm that banking M&A could be very effective when the firm had high HR capability. Evidence was also found that HR capability had a direct impact on firm performance. Although in-state M&A strategy was in general superior to out-of-state M&A strategy, a firm with excellent HR capability might narrow the performance difference between in-state and out-of-state M&A. Research limitations/implications - An obvious drawback of using this sample of banking firms is that it raises questions about the generalizability of these findings to smaller financial firms and firms in other industries. This study considers firms having at least one M&A over a three-year period, so we should not generalize our findings to those firms preferring to use internal growth strategies or greenfield start-ups. Practical implications - The main message of this paper is that human resource capability is critical for M&A strategy to be effective. Originality/value - By extending previous investigations which showed that M&A strategy and HR capacity should be independently treated, this study highlights the critical role of internal HR capability in performance implications of M&A strategy. [ABSTRACT FROM AUTHOR]
- Published
- 2006
- Full Text
- View/download PDF
32. Speech at the Chicago Forum of the American Institute of Banking.
- Subjects
- *
BANK deposits , *BANKING industry , *CHECKING accounts , *PAPER money , *BANK notes - Abstract
This article presents the speech delivered at the Chicago Forum of the American Institute of Banking. The speech focuses on the banking behavior of deposit. It is as a dealer in debts, then, that we look for the peculiarity and economic functions of banks. It has, of course, often been pointed out that the funds owed depositors have the characteristic of being, either by law or custom, payable on demand. In addition, however, a portion of the debts banks owe, namely, checking accounts, have a peculiarity that is shared only by debts in the form of Government or bank notes--they serve as the medium of exchange, or money, of the community.
- Published
- 2004
- Full Text
- View/download PDF
33. Mortgages, Minorities and Discrimination: A Bank-Specific Approach.
- Author
-
AGARWAL, SUMIT, LI, SHUMIN, and MIELNICKI, LAWRENCE
- Subjects
- *
MORTGAGE loans , *RACE discrimination , *BANKING industry - Abstract
The publication of the 'Fed Boston Study' drew considerable attention to the long-standing issue of discrimination of minorities in mortgage lending. Federal regulators have since stepped up their efforts to enforce greater compliance of banks with various fair-lending laws. Stengel & Glennon (1999), in their influential paper, offered the industry a statistical methodology that individual banks can use independently or in conjunction with traditional fair-lending enforcement procedures to self-address their compliance with the fair-lending laws. This paper reports the results of such an effort by a bank to illustrate and demonstrate that individual banks can and should conduct independent and statistically rigorous fair-lending examination for the dual purpose of self-assessment and compliance with federal fair-lending laws. [ABSTRACT FROM AUTHOR]
- Published
- 2003
- Full Text
- View/download PDF
34. Interconnectedness in Credit Market: An Empirical Investigation Using UK and US CDS Data.
- Author
-
Bhar, Ramaprasad
- Subjects
- *
CREDIT default swaps , *BOND market , *BANKING industry , *EMPIRICAL research , *TIME series analysis - Abstract
This paper uses a structural time series methodology to test the notion of interconnectedness between the UK and the US credit markets. The empirical tests utilise data on premium for the Banking sector credit default swaps (CDS) and covers the recent period of financial turmoil. The methodology based on Kalman filter is robust in the presence of limited convergence. The long-term steady state convergence in CDS premium is clearly noticeable between these two markets from the results. This observation lends support for the coordinated regulatory policy initiatives to deal with the crisis and offer suggestions for sound operations of the international financial systems. [ABSTRACT FROM AUTHOR]
- Published
- 2016
35. Production and Transaction Economies and IS Outsourcing: A Study of the U.S. Banking Industry.
- Author
-
Ang, Soon and Straub, Detmar W.
- Subjects
- *
CONTRACTING out , *INFORMATION resources , *TRANSACTION costs , *ANALOG computers , *BREAK-even analysis , *BANKING industry , *ECONOMICS - Abstract
This paper studies economic determinants of IS outsourcing. It argues that a focus on comparative economic theories and models can improve our ability to explain outsourcing within the larger context of organizational strategy and environment. Specifically, the research constructs of production cost, transaction cost, and financial slack are examined simultaneously to understand what influences the outsourcing decision. To empirically test these relationships, information was gathered from senior IT managers in 243 U.S. banks. Financial indices from the archives of the Federal Reserve Bank were a second important source of data. Results of the study show that IS outsourcing in banks was strongly influenced by production cost advantages offered by vendors. Transaction costs played a role in the outsourcing decision, but they were much smaller than production costs. Finally, financial slack was not found to be a significant explanator, although firm size was a significant control factor. The paper has important implications for research and practice. For researchers, the findings provide evidence that financial criteria can be key factors in outsourcing decisions and compare the relative effects of production and transaction costs. For practitioners, the findings suggest that managerial sourcing strategies need to weigh both costs when hiring systems integrators. [ABSTRACT FROM AUTHOR]
- Published
- 1998
- Full Text
- View/download PDF
36. PUTTING STORED-VALUE CARDS IN THEIR PLACE.
- Author
-
Haim, Liran and Mann, Ronald
- Subjects
- *
STORED-value cards -- Law & legislation , *CREDIT card laws , *PUBLIC welfare laws , *SOCIAL services , *BANKING industry , *POOR people , *SERVICES for the poor - Abstract
This Essay explores the effects of stored-value cards on social welfare. We argue that stored-value cards, in general, are socially beneficial payment devices. Their burgeoning use benefits society in three main plains. First, by replacing paper-based instruments in market segments previously inaccessible to card-based payments, stored-value cards lower the private and public costs of payment transactions. Second, by extending the use of card-based payment systems towards lower- and middle-income households, stored-value cards foster inclusion of those households in the financial mainstream of our society. Third, by operating without an extension of credit, stored-value cards help to limit the uniquely American reutilization of credit transactions associated with the widespread use of credit-card borrowing. We further identify several risks associated with the use of stored-value cards. First, as in many cases their issuers are not federal banks, storedvalue cards expose consumers to the possibility of losing funds in the case of issuer's insolvency. Second, as their mechanism is vulnerable to data breaches, they expose consumers to unauthorized uses of their funds-- as opposed to other payment cards inhere consumers enjoy regulatory protection on this matter. Third, they raise the issue of the unused funds remaining on the card after most of it has been depleted. We recommend policies that will foster the use of stored-value cards, while adopting several rules that will confine their associated risks. We therefore call for adequate supervision that will assure the availability of deposits insurance to most stored-value cards; an extension of the current unauthorized use rules to stored-value cards; and a mechanism that will allow cash out of small unused funds associated with those cards. We also emphasize the need to exempt from regulation small stored-value cards programs in order to foster their beneficial use in contexts where the risks of harm are slight. [ABSTRACT FROM AUTHOR]
- Published
- 2014
37. Decline in Commercial-Paper Levels Slows, But Investor Nervousness Lingers.
- Author
-
Norman, Laurence, Reed, Danielle, and Blumberg, Deborah Lynn
- Subjects
- *
NEGOTIABLE instruments , *BANKING industry , *CORPORATE finance , *ASSET backed financing - Abstract
The article reports on the decline in the level of outstanding commercial paper. According to U.S. Federal Reserve data, the total amount of outstanding commercial paper used by banks and other companies for short-term financing needs, fell by $62.8 billion to $1.979 trillion. The outstanding asset-backed commercial paper also dropped by $59.4 billion to $998 billion.
- Published
- 2007
38. COMMON MISTAKES IN COMBATING THE ECONOMIC AND FINANCIAL CRISIS.
- Author
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HUIDUMAC-PETRESCU, Cătălin-Emilian and POPA, Alexandru Cătălin
- Subjects
- *
FINANCIAL crises , *FISCAL policy , *SUBPRIME loans , *BANKING industry , *PREVENTION - Abstract
It's been more than five years after the beginning of the global financial crisis and its negative effects can still be felt in the present. Almost all countries in the world have been affected by this crisis to some extent. Authorities' responses depended not only on the specific conditions of their economies, but also by the different political and economic vision of the decision makers. This paper proposes a brief analysis of the effectiveness of different types of anti-crisis measures, focusing on common mistakes made by authorities around the world. [ABSTRACT FROM AUTHOR]
- Published
- 2014
39. FISCAL POLICY AND LENDING RELATIONSHIPS.
- Author
-
MELINA, GIOVANNI and VILLA, STEFANIA
- Subjects
- *
LOANS , *FISCAL policy , *VECTOR autoregression model , *BANKING industry , *PUBLIC spending , *REGRESSION analysis , *PUBLIC finance - Abstract
This paper studies how fiscal policy affects loan market conditions in the United States. First, it conducts a structural vector-autoregression analysis showing that the bank spread responds negatively to an expansionary government spending shock, while lending increases. Second, it illustrates that these results are mimicked by a dynamic stochastic general equilibrium model where the bank spread is endogenized via the inclusion of a banking sector exploiting lending relationships. Third, it shows that lending relationships represent a friction that generates a financial accelerator effect in the transmission of the fiscal shock. (JEL E44, E62 ) [ABSTRACT FROM AUTHOR]
- Published
- 2014
- Full Text
- View/download PDF
40. Bank size, lending paradigms, and usage of Farm Service Agency's guaranteed loan programs.
- Author
-
Dodson, Charles
- Subjects
- *
AGRICULTURAL credit , *BANKING industry , *GOVERNMENT guaranty of loans , *COMMUNITY banks - Abstract
Purpose – An established paradigm in small business lending is segmented by bank size with large banks more likely to lend to large informationally transparent firms while small banks are more likely to lend to small informationally opaque firms. In light of banking consolidation, this market segmentation can have implications for credit availability. Federal loan guarantees, such as those provided by USDA's Farm Service Agency (FSA) may reduce the risks of lending to informationally opaque firms thereby mitigating the impacts of the bank size lending paradigm. This paper aims to discuss these issues. Design/methodology/approach – This analysis utilized a binomial logit procedure to determine if there was any empirical evidence that smaller community banks served a unique clientele of farmers when making FSA-guaranteed loans. The analysis relied on a unique data set which incorporated detailed data on farm businesses receiving FSA-guaranteed loans, loan characteristics, as well as information about the originating bank and characteristics of the local credit markets. Findings – Results were consistent with the bank size lending paradigm with smaller banks being less likely to engage in fixed-asset lending, and more likely to serve a riskier and less established clientele when making guaranteed loans. Research limitations/implications – Data limitations did not permit detailed analysis of banks larger than $250 million in total assets nor for consideration of non-bank lenders. An expansion by these lender groups into serving more informationally opaque borrowers could mitigate any adverse impacts arising from fewer small community banks. Practical implications – The results suggested that Federal guarantees do not completely eliminate the relative informational advantages of large and small size banks. And, continued bank consolidation, such that there are fewer small community banks, could result in less credit availability among smaller, less creditworthy farm businesses. Social implications – While FSA guarantees may not enhance a large banks propensity to serve informationally opaque farm borrowers, they may enhance the ability of smaller community banks to serve groups specifically targeted through FSA lending programs; the provision of credit to family farmers who, despite being creditworthy, are unable to obtain credit at reasonable rates and terms. Originality/value – The analysis examines relationship between bank size and the use of FSA guarantees using a unique data set which incorporated information on FSA-guaranteed loans, farm financial characteristics, along with characteristics of commercial banks which participated in the FSA-guarantee program. [ABSTRACT FROM AUTHOR]
- Published
- 2014
- Full Text
- View/download PDF
41. Real Output of Bank Services: What Counts Is What Banks Do, Not What They Own.
- Author
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Inklaar, Robert and Wang, J. Christina
- Subjects
- *
BANKING research , *BANKING industry , *ECONOMIC indicators - Abstract
The article presents research paper about the methodological inquiry of how to measure the real value of the real output of bank services. It states that the paper shows that the bias of the deflated-balance series differs across types of bank services, countries and over time. Moreover, it notes that the official estimate of European bank output growth is most probably biased relative to that of the U.S.
- Published
- 2011
42. Rescue Readied By Banks Is Bet To Spur Market.
- Author
-
Mollenkamp, Carrick, Solomon, Deborah, Sidel, Robin, Reilly, David, Karmin, Craig, and McDonald, Ian
- Subjects
- *
FINANCE , *BANKING industry , *COMMERCIAL paper issues , *NEGOTIABLE instruments - Abstract
The article reports on talks which were set up in October of 2007 by the United States Treasury to help a group of U.S. banks set up a $100 billion fund to buy troubled assets in exchange for new short term debt which may be up and running by January. The Treasury hopes that the plan which may be announced on October 15, 2007, will jump start demand for commercial paper, which froze in the summer of 2007.
- Published
- 2007
43. Mortgage Paper Trail.
- Author
-
SCHULTZ, JENNIFER SARANOW
- Subjects
- *
REFINANCING , *LEGAL documents , *BANKING industry - Abstract
In light of how long it can take to close a refinancing or mortgage these days -- especially considering how many paper documents are involved in the process and could potentially get lost, delaying the process further -- we wondered whether a mortgage cloud of sorts exists at any banks. Specifically, we wondered why banks don't just scan all mortgage documents the minute they get them and then put them into an internal cloud of sorts that any employee could get access to. That would also help prevent lost documents. To find out, we checked with Chase and Bank of America. [ABSTRACT FROM AUTHOR]
- Published
- 2011
44. Reliance on Fed Drops For Commercial Paper.
- Author
-
Shrivastava, Anusha
- Subjects
- *
CENTRAL banking industry , *BANKING industry , *REFINANCING , *DEBT service , *CORPORATE finance - Abstract
The article reports on the decline of Federal Reserve's commercial-paper lending to U.S. companies on May 1, 2009. The decline is a sign that market's reliance on the U.S. Federal Reserve is waning. Data from the Federal Reserve that companies have refinanced in the open market. The holdings of the Federal Reserve dropped to $181.80 billion on April 30, 2009.
- Published
- 2009
45. A COLONIAL BANK UNDER SPANISH AND AMERICAN SOVEREIGNTY: THE BANCO ESPAÑOL DE PUERTO RICO, 1888-1913.
- Author
-
Martín-Aceña, Pablo and de Montaud, Inés Roldán
- Subjects
- *
BANKING industry , *COLONIAL banking industry , *BANK loans , *MONETARY policy , *BANKING laws ,PUERTO Rican economic conditions - Abstract
This paper offers the history of the Banco Español de Puerto Rico from its creation in 1888 to its liquidation in 1913. The Banco Español was the sole note-issuing institution of the island until 1898, when Puerto Rico was transferred to the United States. The establishment of the Bank was plagued with difficulties and during its first decade of existence it met with diverse obstacles that hindered its financial development. However, it contributed to diversifying the underdeveloped banking structure of the colony, to bringing down the cost of credit, and to modernizing the island's monetary system. The transfer of sovereignty was traumatic since the Bank lost its issue monopoly and had to adjust to US banking legislation. In 1905, its name was changed to Banco de Puerto Rico and its by-laws were reformed. The last years of the Bank's life were prosperous and it once again made an important contribution to the island's economy. All in all, the history of the institution is a mixture of errors and achievements, a history of setbacks and successes. [ABSTRACT FROM AUTHOR]
- Published
- 2013
- Full Text
- View/download PDF
46. Connections with banking institutions and diverse asset portfolios in young adulthood: Children as potential future investors.
- Author
-
Friedline, Terri and Elliott, William
- Subjects
- *
HYPOTHESIS , *ASSETS (Accounting) , *BANKING industry , *CONFIDENCE intervals , *STATISTICAL correlation , *CREDIT , *EPIDEMIOLOGY , *HABIT , *INVESTMENTS , *LONGITUDINAL method , *PROBABILITY theory , *PUBLIC relations , *RACE , *REGRESSION analysis , *SOCIAL skills , *LOGISTIC regression analysis , *DATA analysis , *SECONDARY analysis , *RETROSPECTIVE studies , *DESCRIPTIVE statistics - Abstract
Abstract: A central hypothesis of Child Development Accounts (CDA) suggests that savings accounts in childhood lay a foundation for connecting to mainstream banking institutions and diversifying asset portfolios in young adulthood and beyond. While children may have limited savings to invest initially, they are financial actors who may increasingly invest money into different types of savings products over time. This paper uses propensity score weighted, longitudinal data from the Panel Study of Income Dynamics and its supplements to examine the types of financial and nonfinancial assets owned by young adults and whether or not they are more likely to own these assets when they have savings accounts as children. The most commonly owned assets in young adulthood included savings accounts (89%), vehicles (54%) and credit cards (51%). Smaller percentages owned stocks (9%), bonds (6%), and homes (8%). On average, young adults owned two to three different assets. Having savings accounts in childhood was associated with being two times more likely to own savings accounts, two times more likely to own credit cards, and four times more likely to own stocks in young adulthood, compared to not having savings accounts in childhood. Young adults' ownership of more total financial assets was also associated with having savings accounts in childhood. Findings provide some supporting evidence of demand for children's savings accounts. Policy endeavors that remove barriers to account ownership may be advantageous for children and mainstream banks. [Copyright &y& Elsevier]
- Published
- 2013
- Full Text
- View/download PDF
47. Does the structure of banking markets affect economic growth? Evidence from U.S. state banking markets.
- Author
-
Mitchener, Kris James and Wheelock, David C.
- Subjects
- *
ECONOMIC development , *UNITED States manufacturing industries , *BANKING industry , *BANKING laws , *INDUSTRIALIZATION , *INDUSTRIAL organization (Economic theory) ,BANKING industry & economics - Abstract
This paper examines the impacts of banking market structure and regulation on economic growth using new data on banking market concentration and manufacturing industry-level growth rates for U.S. states during 1899-1929--a period when the manufacturing sector was expanding rapidly and restrictive branching laws segmented the U.S. banking system geographically. Unlike studies of developing and developed countries today, we find that banking market concentration generally had a positive impact on manufacturing sector growth in the early twentieth century United States, with a somewhat stronger impact on industries with smaller establishments, lower rates of incorporation, and less reliance on bond markets (and, hence, relatively more reliance on banks). Because regulations affecting bank entry varied considerably across states and the industrial organization of the U.S. banking system differs markedly from those of other countries, we consider the impact of other aspects of banking market structure and policy on growth. Even after controlling for differences in the prevalence of branch banking, deposit insurance, and other aspects of policy and market structure, we find that market concentration boosted industrial growth. [ABSTRACT FROM AUTHOR]
- Published
- 2013
- Full Text
- View/download PDF
48. Global Banking Glut and Loan Risk Premium.
- Author
-
Shin, Hyun Song
- Subjects
- *
BANKING industry , *RATE of return , *CAPITAL movements , *FINANCE - Abstract
European global banks intermediating U.S. dollar funds are important in influencing credit conditions in the United States. U.S. dollar-denominated assets of banks outside the United States are comparable in size to the total assets of the U.S. commercial bank sector, but the large gross cross-border positions are masked by the netting out of the gross assets and liabilities. As a consequence, current account imbalances do not reflect the influence of gross capital flows on U.S. financial conditions. This paper pieces together evidence from a global flow of funds analysis, and develops a theoretical model linking global banks and U.S. loan risk premiums. The culprit for the easy credit conditions in the United States up to 2007 may have been the 'Global Banking Glut' rather than the 'Global Savings Glut.' [ABSTRACT FROM AUTHOR]
- Published
- 2012
- Full Text
- View/download PDF
49. A triple hurdle model of US commercial bank use of guaranteed operating loans and interest assistance.
- Author
-
Ahrendsen, Bruce L., Dixon, Bruce L., Settlage, Latisha A., Koenig, Steven R., and Dodson, Charles B.
- Subjects
- *
BANKING industry , *BANK loans , *DEBT service , *DEBT management , *AGRICULTURAL policy - Abstract
Purpose – The purpose of this paper is to estimate a three-equation model of US commercial bank usage of the Farm Service Agency's (FSA) guaranteed operating loan and interest assistance programs. Also, to identify the key farm and banking variables that affect the decision to use loan guarantees and the volume of loans with interest assistance. Design/methodology/approach – A triple hurdle, three-equation system is estimated to model three decisions: to participate in the FSA operating loan program; whether to use interest assistance given the decision to participate in the operating loan program; and then the degree of participation in the interest assistance program. Statistical selection is modeled. Data on almost all commercial banks in the USA from 1995 to 2003 are used in the estimation sample. Findings – Statistical selection is statistically significant so selection must be included in the models. Variables reflecting state-level characteristics such as farm debt servicing ratio, individual bank loan-to-asset ratio, bank size and the general guaranteed loan and interest assistance environment are significant in all three equations. Intensity of interest assistance use varies markedly across states. Originality/value – The interest assistance program has high subsidy costs and is an important source of support for financially marginal farmers. Scant prior research has investigated this program. The present study also shows that modeling interest assistance usage must be embedded in a larger model to give a complete specification. [ABSTRACT FROM AUTHOR]
- Published
- 2011
- Full Text
- View/download PDF
50. Diversificación y determinantes del desempeño bancario: una comparación internacional.
- Author
-
Jara Bertin, Mauricio, Arias Moya, José Tomás, and Rodríguez Perales, Arturo
- Subjects
- *
BANKING industry , *INSTITUTIONAL environment , *PROFITABILITY , *DIVERSIFICATION in industry - Abstract
This paper analyzes the determinants of bank performance between Latin American and U.S. institutional environment. For a sample of 111 banks of six Latin American countries and the United States over the period 1997-2010, our results show the existence of significant differences in bank performance between the two institutional settings. Specifically, U.S. banks show higher performance levels compared to Latin America, which may be explained by the greater administrative efficiency associated with total assets. On the other hand, our results show that the predominant Latin American diversification through non-traditional banking activities has a positive effect on the performance of banks. [ABSTRACT FROM AUTHOR]
- Published
- 2011
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