Research Blogs and Notes

Blog: Providing a more complete picture of credit supply from banks

Jul 26, 2017

In a recent speech, Nellie Liang, senior fellow at the Brookings Institution, reported evidence that she asserts demonstrates that high capital requirements and draconian stress tests are not constraining the provision of credit by banks in the United States.  Ms. Liang overlooked some relevant data on this point that we provide below.

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Blog: The Leverage Ratio: Neither Simple nor Sensible

Jun 26, 2017

Renewed interest in the long-running debate over the value and appropriate role of the leverage ratio in bank capital regulation make this an opportune time to revisit key problems with the leverage ratio and flaws in the argument of those who support it. 

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Blog: Unlocking the Liquidity Coverage Ratio

Jun 7, 2017

The penalty and stigma associated with violating the Liquidity Coverage Ratio (LCR) creates a disincentive for banks to use High Quality Liquid Assets (HQLA) in times of stress and potentially causes banks to unnecessarily hoard liquidity.

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Blog: Updated TCH Bank Conditions Index

Jun 2, 2017

The Clearing House Bank Conditions Index (TCHBCI) shows the first quarter of 2017 had the highest level of resiliency since the start of the index in the first quarter of 1996 (see Exhibit 1).  The aggregate index goes from 0 to 100 with 100 being the most resilient, and since it is at its sample peak, it is at 100. 

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