FRB-NY Study: Big-Bank Complexity Dropped, What’s Left Might Be Beneficial
Late last week, the Federal Reserve Bank of New York released a staff paper finding that, from 2007 to 2017, organizational and geographic complexity at large U.S. banks dropped and business complexity shifted at the biggest banks due to greater concentration in portfolio management and a drop in financial intermediation.
FHFA Targets FHLB Acquired Member Assets
Continuing its policy of curtailing GSE product offerings that could compete with the private sector, the FHFA today has released an advisory bulletin instructing Home Loan Bank boards quickly to set limits on acquired-member-asset (AMA) programs.
FRB Staff: GSIBs Window Dress One GSIB Indicator
New research from FRB staffers examining ways U.S. GSIBs might minimize GSIB surcharges (see FSM Report GSIB7) concludes that window dressing has occurred in only one systemic indicator category, but that window-dressing within this category is significant.
IMF Study Finds Fintech Financial-Stability Benefits, We’re Not So Sure
In this alert, we assess a new IMF staff paper finding that fintech adoption is likely to increase financial stability by enhancing borrower monitoring and screening. While the paper makes broad conclusions about fintech’s impact on financial stability, it only assesses the impact of U.S. bank technology adoption on non-performing loans (NPLs) during the crisis.
HFSC to Advance Targeted National Usury Cap
As part of its Wednesday hearing on “rent-a-bank schemes,” HFSC will consider legislation (H.R. 5050) that would impose a 36 percent usury APR cap on certain consumer loans.
Big Banks Found Safer Except re Liquidity Risk
The Federal Reserve Bank of New York blog today examined large U.S. BHCs since the financial crisis, confirming Fed assertions that these companies have changed their ways but finding troubling indications of elevated liquidity risk.