Bill NelsoninBank Policy InstituteWhen Will Banks Start Raising Deposit Rates: Here’s What History ShowsAs interest rates rise across the economy, bank depositors have not seen much increase in the rates they are being paid. This note examines…Apr 25, 2022Apr 25, 2022
Bill NelsoninBank Policy InstituteA Major Limit on the Fed’s Crisis Toolkit: ShameRegulatory reforms implemented in the wake of the Global Financial Crisis have greatly increased the resilience of the banking system, as…Jan 25, 2022Jan 25, 2022
Bill NelsoninBank Policy InstituteThe Fed is Stuck on the Floor: Here’s How It Can Get Up. — Bank Policy InstituteOn Jan. 30, 2019, the Federal Open Market Committee of the Federal Reserve System announced to little fanfare a momentous change in how it…Jan 11, 2022Jan 11, 2022
Bill NelsoninBank Policy InstituteCredit Losses from Declining Industries: Lessons for Climate-risk ModelingThe rise in banking agency interest in climate risks has owed in large part to a perceived risk that banks will make substantial losses on…Sep 15, 2021Sep 15, 2021
Bill NelsoninBank Policy InstituteDiscount Window Stigma: We Have Met the Enemy, and He Is UsParaphrasing former Fed Governor and former bank CEO Betsy Duke when she was asked to explain why banks are reluctant to use the discount…Aug 10, 20211Aug 10, 20211
Bill NelsoninBank Policy InstituteThe Benefits and Costs of a Central Bank Digital Currency for Monetary PolicyThis note evaluates the monetary policy benefits and costs of a U.S. central bank digital currency. A recently released BPI working paper…Apr 15, 2021Apr 15, 2021
Bill NelsoninBank Policy InstituteTime To Return To the Regular Rulebook — Economic Uncertainty Is Not Extraordinarily ElevatedIn June 2020, the Federal Reserve Board took the extraordinary action of limiting dividend payments and banning share repurchases of all…Feb 26, 2021Feb 26, 2021
Bill NelsoninBank Policy InstituteThe Fact that Big Banks’ Stock Prices Got Hammered This Spring Hardly Proves They are TBTFThis morning, the New York Fed released a new blog post, “Did Subsidies to Too-Big-To-Fail Banks Increase during the COVID-19 Pandemic?”…Feb 11, 2021Feb 11, 2021
Bill NelsoninBank Policy InstituteTurns Out Leveraged Loans Aren’t a Systemic Risk After AllSummaryFeb 8, 2021Feb 8, 2021
Bill NelsoninBank Policy InstituteThe Costs of High Levels of Reserve BalancesThe Federal Open Market Committee meets tomorrow and the day after tomorrow to discuss the state of the economy and the stance of monetary…Jan 25, 2021Jan 25, 2021