by Liberty Street Economics | Apr 10, 2024 | alerts, Markets/Economy
Fulvia Fringuellotti and Saketh Prazad Following the Silicon Valley Bank collapse, the stock prices of U.S banks fell amid concerns about the exposure of the banking sector to interest rate risk. Thus, between March 8 and March 15, 2023, the S&P 500 Bank index...
by Liberty Street Economics | Apr 8, 2024 | alerts, Markets/Economy
Cecilia Caglio and Adam Copeland A classic question for U.S. financial firms is whether to organize themselves as entities that are affiliated with a bank-holding company (BHC). This affiliation brings benefits, such as access to liquidity from other affiliated...
by Liberty Street Economics | Apr 3, 2024 | alerts, Markets/Economy
Hyeyoon Jung, Robert Engle, Shan Ge, and Xuran Zeng As the frequency and severity of natural disasters increase with climate change, insurance—the main tool for households and businesses to hedge natural disaster risks—becomes increasingly important. Can the insurance...
by Liberty Street Economics | Apr 1, 2024 | alerts, Markets/Economy
Donald P. Morgan and Wilbert van der Klaauw Overdraft credit, when banks and credit unions allow customers to spend more than their checking account holds, has many critics. One fundamental concern is whether overdrafts are salient—whether account holders know how...
by Liberty Street Economics | Mar 27, 2024 | alerts, Markets/Economy
In this post, we evaluate how deposits have evolved over the latter portion of the current monetary policy tightening cycle. We find that while deposit betas have continued to rise, they did not accelerate following the bank runs in March 2023. In addition, while...
