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

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

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

Μη διαθέσιμη περίληψηno abstrac

The Lopsidedness of Present-Day Galaxies: Results from the Sloan Digital Sky Survey

Large-scale asymmetries in the stellar mass distribution in galaxies are believed to trace non-equilibrium situations in the luminous and/or dark matter component. These may arise in the aftermath of events like mergers, accretion, and tidal interactions. These events are key in the evolution of galaxies. In this paper we quantify the large-scale lopsidedness of light distributions in 25155 galaxies at z < 0.06 from the Sloan Digital Sky Survey Data Release 4 using the m = 1 azimuthal Fourier mode. We show that the lopsided distribution of light is primarily due to a corresponding lopsidedness in the stellar mass distribution. Observational effects, such as seeing, Poisson noise, and inclination, introduce only small errors in lopsidedness for the majority of this sample. We find that lopsidedness correlates strongly with other basic galaxy structural parameters: galaxies with low concentration, stellar mass, and stellar surface mass density tend to be lopsided, while galaxies with high concentration, mass, and density are not. We find that the strongest and most fundamental relationship between lopsidedness and the other structural parameters is with the surface mass density. We also find, in agreement with previous studies, that lopsidedness tends to increase with radius. Both these results may be understood as a consequence of several factors. The outer regions of galaxies and low-density galaxies are more susceptible to tidal perturbations, and they also have longer dynamical times (so lopsidedness will last longer). They are also more likely to be affected by any underlying asymmetries in the dark matter halo.Comment: 42 pages, 13 figures, 3 tables, accepted to Ap

Understanding and Finding Solutions to the Problem of Sedimentation in the National Wildlife Refuge System

The National Wildlife Refuge System (Refuge System) is a collection of public lands maintained by the U.S. Fish and Wildlife Service for migratory birds and other wildlife. Wetlands on individual National Wildlife Refuges (Refuges) may be at risk of increased sedimentation because of land use and water management practices. Increased sedimentation can reduce wetland habitat quality by altering hydrologic function, degrading water quality, and inhibiting growth of vegetation and invertebrates. On Refuges negatively affected by increased sedimentation, managers have to address complex questions about how to best remediate and mitigate the negative effects. The best way to account for these complexities is often not clear. On other Refuges, managers may not know whether sedimentation is a problem. Decision makers in the Refuge System may need to allocate resources to studying which Refuges could be at risk. Such analyses would help them understand where to direct support for managing increased sedimentation. In this paper, we summarize a case study demonstrating the use of decision-analytic tools in the development of a sedimentation management plan for Agassiz National Wildlife Refuge, Minnesota. Using what we learned from that process, we surveyed other Refuges in U.S. Fish and Wildlife Service Region 3 (an area encompassing the states of Illinois, Indiana, Iowa, Ohio, Michigan, Minnesota, Missouri, and Wisconsin) and Region 6 (an area encompassing the states of Colorado, Kansas, Montana, Nebraska, North Dakota, South Dakota, Utah, and Wyoming) about whether they experience sediment-related impacts to management. Our results show that cases of management being negatively affected by increased sedimentation are not isolated. We suggest that the Refuge System conduct a comprehensive and systematic assessment of increased sedimentation among Refuges to understand the importance of sedimentation in context with other management problems that Refuges face. The results of such an assessment could guide how the Refuge System allocates resources to studying and managing widespread stressors

Direct Laser Fabrication of a Gas Turbine Engine Component - Microstructure and Properties - Part I

This paper presents the development of a new technique for the production of abrasive turbine blade tips by direct laser processing. This superalloy cermet component is an integral part of the low pressure turbine sealing system in a demonstrator engine. Direct laser fabrication of this component fiom a bed a loose powder results in significant cost savings and improved performance over the currently employed production technique. The technology has been demonstrated by fabricating a prototype lot of 100 blade tips, which will be subjected to an engine test. This is the first instance of a direct fabrication method applied to the production of functional engine hardware. This research was funded by the United States Air Force contract F33615-94- C-2424 titled "Affordable Turbine Blade Tips".Mechanical Engineerin

Preferential Quadriceps Activation in Female Athletes with Incremental Increases in Landing Intensity

The purpose of this study was to identify alterations in preparatory muscle activation patterns across different drop heights in female athletes. Sixteen female high school volleyball players performed the drop vertical jump from three different drop heights. Surface electromyography of the quadriceps and hamstrings were collected during the movement trials. As the drop height increased, muscle activation of the quadriceps during preparatory phase also increased (p \u3c .05). However, the hamstrings activation showed no similar increases relative to drop height. Female athletes appear to preferentially rely on increased quadriceps activation, without an increase in hamstrings activation, with increased plyometric intensity. The resultant decreased activation ratio of the hamstrings relative to quadriceps before landing may represent altered dynamic knee stability and may contribute to the increased risk of ACL injury in female athletes

Analysis of Performance Degradation of Silica Gels After Extended Use Onboard the ISS

The disassembly of two flight desiccant beds from the Carbon Dioxide Removal Assembly (CDRA) revealed significant discoloration of the silica gel near the bed inlet as well as a coincidental performance loss. This material was analyzed for the presence of chemical contaminants, physical porosity changes, and adsorption performance. The material characteristics are compared against the location in the bed from which they were sampled in order to develop profiles through the bed. Additional testing of the beds prior to disassembly provided more data points. Possible mechanisms for the loss of capacity are provided though no root cause has been confirmed. Extrapolation of the performance loss is used to estimate the required oversizing of the silica gel layer for long-term operation