What does the Federal Reserve's economic value model tell us about interest rate risk at U.S. community banks?

The savings and loan crisis of the 1980s revealed the vulnerability of some depository institutions to changes in interest rates. Since that episode, U.S. bank supervisors have placed more emphasis on monitoring the interest rate risk of commercial banks. Economists at the Board of Governors of the Federal Reserve System developed a duration-based economic value model (EVM) designed to estimate the interest rate sensitivity of banks. The authors test whether measures derived from the Fed’s EVM are correlated with the interest rate sensitivity of U.S. community banks. The answer to this question is important because bank supervisors rely on EVM measures for monitoring and risk-scoping bank-level interest rate sensitivity. The authors find that the Federal Reserve’s EVM is indeed correlated with banks’ interest rate sensitivity and conclude that supervisors can rely on this tool to help assess a bank’s interest rate risk. These results are consistent with prior research that finds the average interest rate risk at banks to be modest, though the potential interaction between interest rate risk and other risk factors is not considered here.Risk management ; Interest rates ; Banks and banking

Requirements for long-life operation of inert gas hollow cathodes: Preliminary report

An experimental investigation was initiated to establish conditioning procedures for reliable hollow cathode operation via the characterization of critical parameters in a representative cathode test facility. From vacuum pumpdown rates, it was found that approximately 1.5 hours were required to achieve pressure levels within 5 percent of the lowest attainable pressure for this facility, depending on the purge conditions. The facility atmosphere was determined by a residual gas analyzer to be composed of primarily air and water vapor. The effects of vacuum pumping and inert gas purging were evaluated. A maximum effective leakage rate of 2.0 x 10(exp -3)sccm was observed and its probable causes were examined. An extended test of a 0.64 cm diameter Mo-Re hollow cathode was successfully completed. This test ran for 504 hours at an emission current of 23.0 amperes and a xenon flow rate of 6.1 sccm. Discharge voltage rose continuously from 15 to 21 volts over the course of the test. The temperature of the cathode body during the test was relatively stable at 1160 C. Post-test examination revealed ion-bombardment texturing of the orifice plate to be the only detectable sign of wear on the hollow cathode

What does the Federal Reserve’s economic value model tell us about interest rate risk at U.S. community banks?

The savings and loan crisis of the 1980s revealed the vulnerability of some depository institutions to changes in interest rates. Since that episode, U.S. bank supervisors have placed more emphasis on monitoring the interest rate risk of commercial banks. One outcome developed by economists at the Federal Reserve Board of Governors was a duration-based Economic Value Model (EVM) designed to estimate the interest rate sensitivity of banks. ; We test whether measures derived from the Fed’s EVM are correlated with the interest rate sensitivity of U.S. community banks. The answer to this question is important because bank supervisors rely on EVM measures for monitoring and scoping bank-level interest rate sensitivity. ; We find that the Federal Reserve’s EVM is indeed correlated with banks’ interest rate sensitivity and conclude that supervisors can rely on this tool to help assess a bank’s interest rate risk. Our results are consistent with prior research that finds the average interest rate risk at banks to be modest, though we do not consider the potential interaction between interest rate risk and other risk factors.Community banks ; Risk management ; Interest rates

Giving subjects the eye and showing them the finger: socio-biological cues and saccade generation in the anti-saccade task.

Pointing with the eyes or the finger occurs frequently in social interaction to indicate direction of attention and one's intentions. Research with a voluntary saccade task (where saccade direction is instructed by the colour of a fixation point) suggested that gaze cues automatically activate the oculomotor system, but non-biological cues, like arrows, do not. However, other work has failed to support the claim that gaze cues are special. In the current research we introduced biological and non-biological cues into the anti-saccade task, using a range of stimulus onset asynchronies (SOAs). The anti-saccade task recruits both top ^ down and bottom^ up attentional mechanisms, as occurs in naturalistic saccadic behaviour. In experiment 1 gaze, but not arrows, facilitated saccadic reaction times (SRTs) in the opposite direction to the cues over all SOAs, whereas in experiment 2 directional word cues had no effect on saccades. In experiment 3 finger pointing cues caused reduced SRTs in the opposite direction to the cues at short SOAs. These findings suggest that biological cues automatically recruit the oculomotor system whereas non- biological cues do not. Furthermore, the anti-saccade task set appears to facilitate saccadic responses in the opposite direction to the cues

Diporto: An Early Byzantine Maritime Settlement in the Gulf of Korinth

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