Moral hazard in payment systems

Payment systems ; Clearinghouses (Banking) ; Federal Reserve banks ; Electronic funds transfers

Why are ATM fees rising?

Automated tellers ; Banks and banking - Service charges

The effects of interstate banking

Interstate banking ; Branch banks

Risks in the swaps market

Risk ; Swaps (Finance)

FIRREA and the future of thrifts

Financial Institutions Reform, Recovery, Enforcement Act of 1989 ; Savings and loan associations ; Deposit insurance

Banks and mutual funds

Mutual funds ; Bank deposits

Determinants of bank versus nonbank competitiveness in short-term business lending

Since about 1974, banks' share of the market for short-term business lending has been steadily eroded through competition with nonbank creditors. This paper tries to identify some factors that may affect bank competitiveness in this category in the short fun and discusses how these factors may have contributed to banks' loss of market share. Estimation of a simple linear model in first differences indicates that banks' market share responds negatively in the short run to above-average default risk and/or monetary tightness and to a decrease in banks' value of deposit insurance. Banks' market share responds positively to an increase in the level of interbank competition. Extrapolation from the short-run model to long-run effects demonstrates the plausibility that above average risk and/or monetary tightness and increases in the aggregate weighted capital-to-assets ratio, which contributes to decreases in the value of deposit insurance, may have played a small role in banks' loss of market share since the mid-1970s.Bank loans ; Bank competition ; Commercial loans

Banking market structure in the West

Banking structure ; Banks and banking - West ; Banking market ; Federal Reserve District, 12th

Risk-based capital requirements and loan growth

Bank capital ; Bank loans ; Risk ; Bank holding companies

Market power and relationships in small business lending

The empirical research literature regarding the effects of market structure on small business lending has yielded ambiguous results. This paper empirically tests for the presence of countervailing effects of increases in market concentration on small business loan volume. Countervailing effects would be expected if both the traditional Structure, Conduct, Performance (SCP) paradigm of industrial organization and a paradigm whereby market power benefits the formation of lending relationships (the relationship hypothesis), are at work. Using Community Reinvestment Act (CRA) data on small loans to small businesses, it is found that, on average, across MSAs, SCP effects dominate. But, as predicted by the relationship hypothesis, the negative effects of increases in concentration on small business loan volume are weaker, the greater the presence of young firms and the higher the business failure rate. Relationship effects due to business failure appear to come from highly concentrated MSAs. Endogeneity concerns are further addressed with the estimation of a regression that separates out the effects of changes in the number of lenders from the effects of changes in the sum of squared deviations of market shares.Small business - Finance