Geographic liberalization and the accessibility of banking services in rural areas

This study assesses the degree to which the liberalization of geographic banking restrictions has lived up to its promise of enhancing service accessibility in rural areas. The empirical framework is distinguished by a focus on changes in accessibility, as opposed to levels. While previous research has produced mixed results on the benefits of greater geographic powers for service accessibility in rural communities, the results reported here point unambiguously to a positive relationship between expansion opportunities and accessibility. Both OLS and ordinallevel probit regressions indicate that geographic banking liberalizations, particularly those leading to greater branching opportunities, have been associated with relatively strong growth in the number of banking offices serving rural areas.Rural areas ; Banks and banking

Taming the credit cycle by limiting high-risk lending

Reformers should review the loan-to-value guidelines for real estate lending, toughen them up where necessary and, most important, put the force of law behind them.Regulation ; Mortgage loans - Law and legislation ; Risk management ; Financial crises

Building a Bird: Musculoskeletal Modeling and Simulation of Wing-Assisted Incline Running during Avian Ontogeny

Flapping flight is the most power-demanding mode of locomotion, associated with a suite of anatomical specializations in extant adult birds. In contrast, many developing birds use their forelimbs to negotiate environments long before acquiring “flight adaptations,” recruiting their developing wings to continuously enhance leg performance and, in some cases, fly. How does anatomical development influence these locomotor behaviors? Isolating morphological contributions to wing performance is extremely challenging using purely empirical approaches. However, musculoskeletal modeling and simulation techniques can incorporate empirical data to explicitly examine the functional consequences of changing morphology by manipulating anatomical parameters individually and estimating their effects on locomotion. To assess how ontogenetic changes in anatomy affect locomotor capacity, we combined existing empirical data on muscle morphology, skeletal kinematics, and aerodynamic force production with advanced biomechanical modeling and simulation techniques to analyze the ontogeny of pectoral limb function in a precocial ground bird (Alectoris chukar). Simulations of wing-assisted incline running (WAIR) using these newly developed musculoskeletal models collectively suggest that immature birds have excess muscle capacity and are limited more by feather morphology, possibly because feathers grow more quickly and have a different style of growth than bones and muscles. These results provide critical information about the ontogeny and evolution of avian locomotion by (i) establishing how muscular and aerodynamic forces interface with the skeletal system to generate movement in morphing juvenile birds, and (ii) providing a benchmark to inform biomechanical modeling and simulation of other locomotor behaviors, both across extant species and among extinct theropod dinosaurs

An Evaluation of Herbicides for Broadleaf-Weed Control in Rapeseed: Efficacy, Phytotoxicity, and Soil Persistence Studies

At the recommended rates (1.0 lb/A for trifluralin, ethalfluralin, EL5261; 0.75 lb/A for dinitramine; 1.2 lb/A for nitrofen), none of the herbicides we evaluated in these studies reduced rapeseed stands, yields, or test weights. However, at higher rates (1. 5, 3.0 lb A), dinitramine reduced rapeseed stands, but this did not result in decreased yields. None of the other herbicides reduced rapeseed stand, yield, or test weights when applied at up to four times the recommended rate. No trifluralin residues were detected in rapeseed whole-plant or seed samples. All of the herbicides provided adequate control of common lambsquarters (Chenopodium album L.). Corn spurry (Spergula arvensis L.) was controlled by trifluralin. ethalfluralin. EL-5261, and nitrofen. All of the herbicides except nitrofen controlled chickweed [Stellaria media (L.) Cyrillo]. In 1979, 51 per cent of the trifluralin applied remained at the end of the growing season in one study while 26 per cent remained in another study. The rate of degradation at three sites in 1979 were as follows (greatest to least); Delta Junction, Matanuska Valley, Fairbanks. Degradation rates of trifluralin were not significantly different in three soil types or at two different application rates. Trifluralin showed no signs of leaching through the soil profile. In 1981, 25 per cent of the trifluralin, 8 per cent of the ethalfluralin, and 24 per cent of the EL-5261 applied remained at the end of the growing season. Despite the relatively long persistence of these preplant, incorporated herbicides, yields and test weights of barley planted in succeeding years were not reduced. A benefit of these persistent residues was control of broadleaf weeds in the succeeding barley crop

Financiers of the world, disunite

Diversity across banks and other financial firms promotes a resilient financial system because differing risk profiles reduce the likelihood of systemic crises caused by shared economic shocks. Consolidation and uniformity among banks and other financial intermediaries do the opposite. ; Yet some have suggested that any policy steps to reverse the financial system’s dramatic consolidation might yield little stability benefit because herd-like behavior among financial firms could still reduce diversity and mitigate any strengthening. If these firms moved in concert, the argument goes, they would make themselves susceptible to common shocks as if they had adopted a more consolidated structure. ; Countering this concern are indications that financial firms, when allowed to flourish, display stability-enhancing diversity. We find that hedge funds—despite a reputation for high-risk strategies and correlated behavior—recently have exhibited significant strategic dissimilarities, to the benefit of system stability.Financial risk management

Industry mix and lending environment variability: what does the average bank face

Diversification opportunities for banks may be greater today because of the lessening of geographic restrictions. In addition, regional economies have undergone vast transformations, with relatively volatile industries often assuming a diminished role. To assess whether these changes have resulted in a more stable lending environment, Jeff Gunther and Ken Robinson form industry portfolios for banks based on their presence in different states and the mix of economic activity found in those states. The authors find that the risk underlying banks' lending environments declined from 1985 to 1996 because of both a geographic restructuring of the banking system and increasing industrial diversification of state economies.Banks and banking ; Financial institutions

A CAMEL rating's shelf life

How quickly do the CAMEL ratings regulators assign to banks during on-site examinations become "stale"? One measure of the information content of CAMEL ratings is their ability to discriminate between banks that will fail and those that will survive. To assess the accuracy of CAMEL ratings in predicting failure, Rebel Cole and Jeffery Gunther use as a benchmark an offsite monitoring system based on publicly available accounting data. Their findings suggest that, if a bank has not been examined for more than two quarters, off-site monitoring systems usually provide a more accurate indication of survivability than its CAMEL rating. The lower predictive accuracy for CAMEL ratings “older” than two quarters causes the overall accuracy of CAMEL ratings to fall substantially below that of off-site monitoring systems. The higher predictive accuracy of off-site systems derives from both their timeliness—an updated off-site rating is available for every bank in every quarter—and the accuracy of the financial data on which they are based. Cole and Gunther conclude that off-site monitoring systems should continue to play a prominent role in the supervisory process, as a complement to on-site examinations.bank; bank failure; CAMEL; CAMEL rating; commercial bank; offsite supervision

Has the housing boom increased mortgage risk?

Adjustable rate mortgages

Increasing the efficiency of pooled estimation with a block covariance structure

Econometrics ; Econometric models