Search Results
Conference Paper
Loss underreporting and the auditing role of bank exams
Using a unique set of banking data containing both originally reported and subsequently revised financial variables, we study the incidence of adverse revisions to accounting statements. As might be expected, our findings indicate banks are more likely to underreport financial losses when their financial performance is substandard. In addition, we provide evidence that supervisory exams have an important role in uncovering financial problems and ensuring bank accounting statements reflect them. Specifically, our estimations point to a significant auditing effect, through which exams can lead ...
Report
Community Banks Withstand the Storm
Community banks, which rely on strong customer relationships and disciplined lending practices, weathered the financial crisis better than large, nontraditional banks. This superior performance suggests that a back-to-basics approach to banking could help the nation realize financial stability that lasts.
Report
A Lender for Tough Times
Community banks are not only a major source of credit, but also a stable one for businesses. During the recent financial crisis and its aftermath, these smaller, traditional lenders provided credit to many firms, especially small businesses, when they needed it most.
Report
Small Banks Squeezed
With consistent loan quality and resilient lending activity, community banks?and the traditional banking model they represent?can be a much-needed force for financial stability. Unfortunately, they?ve struggled to maintain market share, partly as a result of unintended consequences of public policy.
Journal Article
Taming the credit cycle by limiting high-risk lending
Reformers should review the loan-to-value guidelines for real estate lending, toughen them up where necessary and, most important, put the force of law behind them.
Journal Article
Financiers of the world, disunite
When large in number, intermediaries—even those reputed for high risk and correlated strategies—exhibit substantial diversity that adds an important element of stability to the financial system.
Journal Article
Cycle-resistant credit systems: learning from Hong Kong’s experience
Hong Kong?s home mortgage market has remained among the world?s most stable. Supervisory authorities point to the 70 percent loan-to-value policy.
Journal Article
Hedge fund investors more rational than rash
Hedge fund investors' tendency to focus on long-term performance strengthens hedge fund stability, according to this issue of the Economic Letter.