Banking and the flow of funds: are banks losing market share?

A look at both the reported decline in the share of nonfinancial-sector credit intermediated by banks and the consolidation of the industry into fewer, but larger, institutions, revealing that banks today account for nearly the same share of outstanding household and nonfinancial business-sector debt as they did 30 years ago.Banking market ; Flow of funds

In search of the elusive credit view: testing for a credit channel in modern Great Britain

An examination of the credit performance of the financial sector in the modern British economy, showing that problems in credit markets associated with debt and default/liquidation can disrupt the production of real financial services necessary to channel funds to efficient investment opportunities.Credit ; Great Britain

Portfolio risks and bank asset choice

An investigation of the effects of credit risk and interest-rate risk on bank portfolio choices, showing how bank capital inadequacy may prevent a bank from investing in the optimal portfolio and how the efficiency of the bank's intermediation technology affects its choice of second-best portfolio.Bank investments ; Risk

The role of banks in influencing regional flow of funds

A presentation of a theoretical model of regional banking using plausible information asymmetries to explain how local bank capital may affect the funding of regional investments, concluding that regional banking conditions can affect the efficiency of investment and the level of future aggregate output.Bank capital ; Banking market ; Regional economics

U.S. banking sector trends: assessing disparities in industry performance

An investigation of the extent to which variations in banking conditions over the past decade were associated with differences in bank size and holding company relationships, finding that very large banks had more problems with loan quality and poor profitability than did smaller banks, and that smaller banks benefited by affiliating with holding companies.Banking structure ; Bank profits

A regional perspective on the credit view

An explanation of how regional credit-market performance can affect local economic activity, showing how imbalances in financial capacity across regions cause capital-poor regions to be underfunded. This reduced financial capacity is related to economic activity in states that are experiencing low growth.Credit ; Regional economics

Increasing national saving: are IRAs the answer?

An argument that curtailing deductions for personal interest expense would be a more effective strategy for increasing national saving.Individual retirement accounts ; Saving and investment ; Income tax

Financial fragility and regional economic growth

An examination of the potential link between local financial problems and regional economic growth, discussing how the health of the financial sector can affect economic performance when credit markets are segmented along regional lines.Credit ; Regional economics

Does small business need a financial fix?

An evaluation of several proposals that would promote additional lending to the small business sector, some through direct government intervention and others by changing existing regulations to promote the market's allocation of credit. The authors argue that market-oriented initiatives are the preferred approach for improving a small-business credit crunch.Small business

The M2 slowdown and depository intermediation: implications for monetary policy

An examination of credit flow rechanneling away from depository institutions over the past decade in response to evolving financial markets and regulatory structure, and a discussion of how this trend has complicated monetary policymaking.Money supply ; Monetary policy