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Showing results 1 to 10 of approximately 23.
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Conference Paper
A bank regulator's view of retail lending
Journal Article
Agricultural lending: what have we learned?
Working Paper
Small business lending: challenges and opportunities for community banks
The recent decline in small business lending (SBL) among U.S. community banks has spurred a growing debate about the future role of small banks in providing credit to U.S. small businesses. This paper adds to that discussion in three key ways. First, this research builds on existing evidence, suggesting that the decline in SBL by community banks is a trend that began at least a decade before the financial crisis. Second, the authors show that in the years preceding the crisis, small businesses increasingly turned to mortgage credit to fund their operations. Finally, this paper illustrates how ...
Journal Article
The relationship between loan classifications and losses : the effects of a changing economy
The agriculture and energy sectors suffered dramatic declines during the 1980s in the Tenth Federal Reserve District. Bank asset quality also declined during this time period, particularly for farm banks. Using information on loan classifications and charge-offs, this study traces classified loans over time to determine their subsequent performance. ; This study found that examiners were able to identify a majority of the problem credits prior to charge-off. Additionally, examiners were able to distinguish the relative riskiness of problem credits. Economic conditions were found to have a ...
Journal Article
The role of bank capital in a post-FDICIA world
FDICIA outlines a system of bank supervision based on capital. This paper examines two of the assumptions behind this supervisory system. These are that banks will engage in more risky behavior as capital declines, and that reported capital ratios are leading indicators that accurately reflect a bank's condition. ; Studies of bank failures during the 1980s have failed to clearly demonstrate that bank supervisors allowed troubled banks to engage in such risky activities as paying excessive dividends or excessive growth. In addition, historical studies show that capital tends to be a ...
Newsletter
China up close: understanding the Chinese economy and financial system (special issue)
In March 2007, the authors paid a weeklong visit to Beijing and Shanghai, China. In this article, they summarize some of the most striking impressions from their visit concerning the Chinese economy and financial system.
Working Paper
The Roles of Alternative Data and Machine Learning in Fintech Lending: Evidence from the LendingClub Consumer Platform
Supersedes Working Paper 17-17. Fintech has been playing an increasing role in shaping financial and banking landscapes. There have been concerns about the use of alternative data sources by fintech lenders and the impact on financial inclusion. We compare loans made by a large fintech lender and similar loans that were originated through traditional banking channels. Specifically, we use account-level data from LendingClub and Y-14M data reported by bank holding companies with total assets of $50 billion or more. We find a high correlation with interest rate spreads, LendingClub rating ...
Journal Article
Small Business Lending After the Financial Crisis: A New Competitive Landscape for Community Banks
Community banks face growing competition, but also opportunities to partner with alternative lenders using technology to find borrowers and underwrite loans.