The model demonstrates the importance of maintaining firm anonymity and identifies network structures that offer increased resilience. 18-03) This paper assesses whether compensation plans can drive excessive risk-taking.
The paper finds that double liability did not reduce bank risk before the Great Depression, but that deposits were less susceptible to runs. 18-06) This paper uses a model of trade in over-the-counter markets to assess the impact of trade frictions, why prices may vary across intermediaries and customers, and the financial stability implications from the price impact of a dealer’s failure.
Proprietary credit default swap data are used to estimate the model. 18-05) This paper develops a model of a downward spiral of falling prices and increasing redemptions that can lead to the failure of a mutual fund.
The paper also discusses the recent increase in collateral demand, effects of post-crisis regulation, and collateral-related stress scenarios. 16-06) This paper describes how mortgage lending standards, as measured by responses to the Federal Reserve's quarterly Senior Loan Officer Opinion Survey, relate to changes in the availability of mortgage loans at banks from 1990 to 2013.
The research suggests that the survey's reported changes in credit standards are a leading indicator of the financial industry's vulnerability to shocks. 16-05) This paper investigates the use of automated text analysis by computers as a tool for monitoring financial stability.