News and Commentary
How risky are Bank Holding Companies (BHC) today? A new blog post at Liberty Street Economics investigates this question while looking at BHCs and finds similar trends across four measures, with substantial increases during and in the years following the last recession.
New Research
A new NBER paper analyzes the role of counter-cyclical capital buffers. The authors find that bank behavior is changed by expectations of bailouts which raises questions about what modern capital buffers can do to aid financial stability.
Another recent NBER paper utilizes variation in state capital gains taxation to examine the effects of housing speculation in the mid and late-2000’s. The authors discuss their paper here.
A recent CEPR paper takes a look at monetary policy and US bank stress tests, finding stress tests narrow which banks offer greater loans to emerging market borrowers and thus reduce the spillovers of changes in monetary policy. The authors discuss their paper here.
A working paper from Ghent University examines macroprudential policy shock effects on credit cycles, finding reduced bank and household credit-to-GDP ratios in 13 EU countries over four years.
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