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Banking and finance

 

  • Surveys

    Banking Conditions Survey

    Loan volume and demand growth decelerated sharply in March. Credit tightening continued, but loan pricing declined.

  • Eleventh District Banking Trends

    Track key metrics with our quarterly update on the financial performance of Eleventh District banks in comparison with national averages.

  • Oil and gas industry shows discipline on capex, but risks remain

    Oil and gas companies will likely maintain a conservative stance toward production growth, with continued focus on capital discipline and maintenance capex.

  • Research Department Working Papers

    Last Resort Insurance: Wildfires and the Regulation of a Crashing Market

    An increasing number of people are denied home insurance coverage in the private market and must instead turn to state-sponsored plans known as “Insurers of Last Resort.” This paper examines how insurers of last resort interact with the private market under increasing disaster risks.

  • Decline in bank stress likely to continue as interest rates normalize

    While the key measures suggest that conditions that hamper a bank’s resilience to economic adversity are marginally higher than before the pandemic in 2019, we expect further declines in bank stress levels as interest rates normalize.

  • Proportionate margining for repo transactions

    Traders in the repurchase agreement (repo) market protect themselves from the default of their counterparties through margin collected via haircuts on repo transactions. Recent research showing that haircuts on many Treasury repo transactions are low or zero has raised concerns that margining practices in this market are insufficiently strict.

  • Surveys

    Banking Conditions Survey

    Loan volume continued increasing at a rapid pace in February while loan demand accelerated further. Credit tightening continued, but loan pricing declined.

  • Research Department Working Papers

    Financial Technology and the 1990s Housing Boom

    This paper shows that locations exposed to initial adopters of Freddie Mac’s Loan Prospector system experienced an early housing boom due to a switch to statistically-informed underwriting rules.

  • Surveys

    Banking Conditions Survey

    Loan volume accelerated sharply in December. Credit tightening continued, but loan pricing declined, both at the same pace as six weeks ago.

  • Eleventh District community banks outperform peers despite weaker credit quality

    Eleventh District community banks will likely continue to outperform their nationwide peers in terms of profitability, given their larger share of noninterest-bearing deposits.