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Financial Intermediation

Economists in the Financial Intermediation Function conduct research and policy-oriented analysis on a wide range of issues relating to financial intermediation and financial markets, including the behavior and health of financial institutions, innovations in financial markets, and the development of appropriate supervisory tools and techniques.

New from Liberty Street Economics Blog

The Impact of Trade Reporting on the Interest Rate Derivatives Market Based on an analysis of new and detailed data on the trading activity of major dealers, this post discusses the possible costs and benefits of reporting requirements on the IRD market. By Michael Fleming, John Jackson, Ada Li, Asani Sarkar, and Patricia Zobel

Data

Banking Research Datasets The Federal Reserve Bank of New York would like to announce the publication of a historical mapping between CRSP PERMCO (R) and the regulatory entity code for banks and bank holding companies. This data set is available for download free of charge for public use. In lieu of using this link, researchers are typically forced to hand-match market data to regulatory data on the basis of institution name. Unfortunately, this process is time-consuming and mistake-prone. This data set is provided as a public service in order to reduce the time costs of using market data in banking research and to make it easier for researchers to replicate existing research.

Recent Articles

The Evolution of Treasury Cash Management during the Financial Crisis This paper examines how a change in Federal Reserve credit policy during the crisis was associated with the change in Treasury cash management practices. Understanding the relationship between Federal Reserve credit policy and Treasury cash management is important because the relationship illuminates an important but sometimes unappreciated interface between the Treasury and the Fed. By Paul J. Santoro, Current Issues in Economics and Finance (18) 3, April 2012

Shadow Banking Regulation The authors review the implications of these reform efforts for shadow funding sources including asset-backed commercial paper, triparty repurchase agreements, money market mutual funds, and securitization. By Tobias Adrian and Adam B. Ashcraft, Staff Reports 559, April 2012

An Analysis of OTC Interest Rate Derivatives Transactions: Implications for Public Reporting This paper examines the over-the-counter (OTC) interest rate derivatives (IRD) market in order to inform the design of post-trade price reporting. By Michael J. Fleming, John Jackson, Ada Li, Asani Sarkar, and Patricia Zobel, Staff Reports 557, March 2012

The Private Premium in Public Bonds The authors find that spreads are 31 basis points higher for public bonds of private companies than for bonds of public companies, even after controlling for observable differences, including rating, financial performance, industry, bond characteristics and issuance timing. By Anna Kovner and Chenyang Wei, Staff Reports 553, March 2012

Trade Dynamics in the Market for Federal Funds The authors develop a model of the market for federal funds that explicitly accounts for its two distinctive features: banks have to search for a suitable counterparty, and once they have met, both parties negotiate the size of the loan and the repayment. By Gara Afonso and Ricardo Lagos, Staff Reports 549, February 2012