This Week in Financial Regulation, February 27th

This Week in Financial Regulation, February 27th

News and Commentary

Gregg Gelzinis highlights five key questions that policymakers should be asking Federal Reserve Chairman Jay Powell. Concerns over capital levels and stress testing top his list.

The Booth School of Business and Kellogg School of Management released their annual Financial Trust Index showing a growing, but still low, level of public trust in financial institutions.

Some St. Louis Fed economists looked at housing prices since the Financial Crisis. They found that, contrary to the typical assumptions, housing price increases aren’t necessarily connected to increases in mortgage borrowing in a “debtless” housing boom.

A blog post by the Federal Reserve Bank of New York tried to estimate the level of outflows by major banks during a potential stress situation and what level of liquidity buffers would be required to maintain systemic stability.

 

New Research

What determines bank lending habits? Bank of England researchers conducted a study looking at how capital requirements affect the types of loans they give out. They found that, while capital requirements lead to more collateralized loans, banks continue to rely onĀ unsecured loans for borrowers that they have a long relationship with.

 

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By |2019-02-27T12:40:12-08:00February 27th, 2019|Blog, Financial Regulation|