Deregulation and the location of financial institution offices

An examination of whether deregulation of the financial services industry has led to a disproportionate number of office closings in poor and minority neighborhoods.Branch banks ; Financial institutions ; Banking market

A comparison of risk-based capital and risk-based deposit insurance

A comparison of alternative bank regulatory proposals for controlling the level of bank risk, using a model based on six FDIC variables for predicting bank failure or loss.Risk ; Capital

Loan commitments and bank risk exposure

Loan commitments increase a bank's risk by obligating it to issue future loans under terms that it might otherwise refuse. However, moral hazard and adverse selection problems potentially may result in these contracts being rationed or sorted. Depending on the relative risks of the borrowers who do and do not receive commitments, commitment loans could be safer or riskier on average than other loans. the empirical results indicate that commitment loans tend to have slightly better than average performance, suggesting that commitments generate little risk or that this risk is offset by the selection of safer borrowers.Bank loans ; Risk

Risk-based capital and deposit insurance reform

Risk-based capital (RBC) is an important component of deposit insurance reform. This paper provides an empirical analysis of the new 1992 RBC bank standards, applying them to data on virtually all U.S. banks from 1982 to 1989. The data reveal strong associations between several measures of future bank performance (including bankruptcy) and the RBC relative risk weights. These associations suggest that the weights constitute a significant improvement over the old capital standards, although there are several instances in which the weights for specific categories appear to be out of line with the performance results. Tests of the informational value of passing or failing the new and old capital standards show that both have independent information, but that the new RBC standards better predict future bank performance problems. The data also indicate that, in contrast to the old standards, the RBC capital burden falls much more heavily on large banks. As a result, banks representing more than one-fourth of all bank assets would have failed the new RBC standards as of 1989. The new standards are also more stringent overall. More banks would have failed the new standards than the old ones, with larger average capital deficiencies.Deposit insurance ; Bank supervision ; Bank capital

Money and interest rates under a reserves operating target

This study examines the short-run dynamic relationships between nonborrowed reserves, the federal funds rate, and transaction accounts using daily data from 1979 through 1982. Separate models are estimated for each day of the week, and simulation experiments are performed. The results suggest that the funds rate responded quite rapidly to a change in nonborrowed reserves, but that the short-run nonborrowed reserves multiplier for transaction accounts was only about 18 percent of its theoretical maximum. In addition, the Federal Reserve appeared to accommodate about 65 percent of a permanent shock to money, and lagged reserve requirements seemed to delay depository institutions' response to a money shock.Interest rates ; Bank reserves

New information reported under HMDA and its application in fair lending enforcement

In 2002 the Federal Reserve Board amended its Regulation C, which implements the Home Mortgage Disclosure Act of 1975, to expand the types of information that lenders covered by the law must disclose to the public about their home-lending activities. The amendments are intended to improve the quality, consistency, and utility of the reported data and to keep the regulation in step with recent developments in home-loan markets. Data reported for 2004 are the first to reflect the changes in the reporting rules. ; This article presents a first look at these greatly expanded data and considers some of their implications for the continuing concerns about fair lending. The analysis highlights some key relationships revealed in an initial review of the types of data that are new for 2004. Some parts of the analysis focus on nationwide statistics, and others examine patterns across groups of lenders, loan products, and various groupings of applicants, borrowers, and neighborhoods. The authors explore, in particular and in some depth, the strengths and limitations of the information on loan pricing. They also describe how the new data are being used to enhance fair lending enforcement activities.Regulation C: Home Mortgage Disclosure ; Home Mortgage Disclosure Act

Raising A University Through Collective Bargaining

Collective bargaining at its idealist core promises to “love, honor and respect till death do us part.” Historically that has been about as successful as the institution demanding the promise as a condition precedent to the marital union formed. Nevertheless, the progeny of that union, no matter how difficult and imperfect, is the responsibility of that union. Even where there is no duality, there remains a responsibility that is both transparent and undeniable to mold, grow, influence and set an example of excellence for the higher education entity to grow into. This responsibility is then borne of the greatest, purest and most honorable opportunity. It is from this perspective that collective bargaining yields the best results for the entity. It is from this perspective that I approach collective bargaining, however confounding, irritating and obnoxiously particular it seems, as spirit, intent and letter of the rules for the organization to grow by are fashioned

Raising A University Through Collective Bargaining

Collective bargaining at its idealist core promises to “love, honor and respect till death do us part.” Historically that has been about as successful as the institution demanding the promise as a condition precedent to the marital union formed. Nevertheless, the progeny of that union, no matter how difficult and imperfect, is the responsibility of that union. Even where there is no duality, there remains a responsibility that is both transparent and undeniable to mold, grow, influence and set an example of excellence for the higher education entity to grow into. This responsibility is then borne of the greatest, purest and most honorable opportunity. It is from this perspective that collective bargaining yields the best results for the entity. It is from this perspective that I approach collective bargaining, however confounding, irritating and obnoxiously particular it seems, as spirit, intent and letter of the rules for the organization to grow by are fashioned