Our Research Focus

Financial Regulation

We study the impact of financial regulation on the financial sector and the broader economy. Our research covers a broad range of topics, including bank capital regulations, consumer regulations, and central bank lending. Our recent work has dealt with the size of the federal financial safety net, the influence of regulation on mortgage default rates, and bank runs.

To learn more about the safety net, which is supposed to protect large financial institutions and their creditors from failure and reduce "systemic risk" but may not do either, read the Richmond Fed's essay on the "too big to fail" problem in the "Our Perspective" series.

Economic
Quarterly
Economic
Review
Working
Papers
Economic
Brief
Annual Report
Essays

Issue	Title	Author(s)
First Quarter 2012	Orderly Liquidation Authority as an Alternative to Bankruptcy	Sabrina R. Pellerin John R. Walter
First Quarter 2012	Contingent Capital: The Trigger Problem	Edward S. Prescott
Second Quarter 2011	Legal Protection to Foreign Investors	Juan Carlos Hatchondo Leonardo Martinez
First Quarter 2011	Mortgage Reform and the Countercyclical Role of the Federal Housing Administration's Mortgage Mutual Insurance Fund	Brent C Smith
Third Quarter 2010	How Large Has the Federal Financial Safety Net Become?	Nadezhda Malysheva John R. Walter
First Quarter 2010	Introduction to the Special Issue on the Diamond-Dybvig Model	Edward S. Prescott
First Quarter 2010	Bailouts	Edward J. Green
First Quarter 2010	On the Fundamental Reasons for Bank Fragility	Huberto M. Ennis Todd Keister
First Quarter 2010	Inside-Money Theory after Diamond and Dybvig	Ricardo de O. Cavalcanti
First Quarter 2010	Monetary Theory and Electronic Money: Reflections on the Kenyan Experience	William Jack Tavneet Suri Robert Townsend
Fall 2009	Dynamic Provisioning: A Countercyclical Tool for Loan Loss Reserves.	Eliana Balla Andrew McKenna
Spring 2009	The Consolidation of Financial Regulation: Pros, Cons, and Implications for the United States	Sabrina R. Pellerin John R. Walter Patricia Wescott
Spring 2009	Should Increased Regulation of Bank Risk-Taking Come from Regulators or from the Market?	Robert L. Hetzel
Winter 2008	Should Bank Supervisors Disclose Information About Their Banks?	Edward S. Prescott
Winter 2008	Antitrust Analysis in Banking: Goals, Methods, and Justifications in a Changed Environment	John R. Walter Patricia E. Wescott
Fall 2006	Changes in the Size Distribution of U. S. Banks: 1960 - 2005	Hubert P. Janicki Edward S. Prescott
Spring 2006	Can Feedback from the Jumbo CD Market Improve Bank Surveillance?	R. Alton Gilbert Andrew P. Meyer Mark D. Vaughan
Winter 2006	The 3-6-3 Rule: An Urban Myth?	John R. Walter
Spring 2005	Bank Risk of Failure and the Too-Big-to-Fail Policy	Huberto M. Ennis H. S. Malek
Winter 2005	Depression-Era Bank Failures: The Great Contagion or the Great Shakeout?	John R. Walter
Fall 2004	Auditing and Bank Capital Regulation	Edward S. Prescott
Winter 2004	Closing Troubled Banks: How the Process Works	John R. Walter
Summer 2003	Accounting for Corporate Behavior	John A. Weinberg
Spring 2003	Banking and Commerce: Tear Down This Wall?	John R. Walter
Fall 2002	Competition Among Bank Regulators	John A. Weinberg
Summer 2002	The Economics of Financial Privacy: To Opt Out or Opt In?	Jeffrey M. Lacker
Spring 2002	What Can Price Theory Say about the Community Reinvestment Act?	John R. Walter Robert L. Lacy
Spring 2002	Can Risk-Based Deposit Insurance Premiums Control Moral Hazard?	Edward S. Prescott
Fall 2001	On the Size Distribution of Banks	Huberto M. Ennis
Summer 2001	Regulating Bank Capital Structure to Control Risk	Edward S. Prescott
Winter 1999	A Primer on Moral-Hazard Models	Edward S. Prescott
Summer 1998	The Bank Merger Wave: Causes and Consequences	J. Alfred Broaddus, Jr.
Winter 1998	Can a Safety Net Subsidy Be Contained?	John R. Walter
Winter 1997	The Pre-Commitment Approach in a Model of Regulatory Banking Capital	Edward S. Prescott
Fall 1996	Firewalls	John R. Walter
Spring 1996	Tie-in Sales and Banks	John A. Weinberg
Fall 1995	Derivatives Debacles: Case Studies of Large Losses in Derivatives Markets	Anatoli Kuprianov
Fall 1994	Were Bank Examiners Too Strict with New England and California Banks?	John R. Walter Robert M. Darin
Spring 1994	Choices in Banking Policy	J. Alfred Broaddus, Jr.

Issue	Title	Author(s)
1991	Too Big to Fail: Origins, Consequences, and Outlook	Robert L. Hetzel
1991	Loan Loss Reserves	John R. Walter
1991	Reflections on Deposit Insurance	Robert P. Black
1990	The Case for Interstate Branch Banking	David L. Mengle
1990	Reforming Deposit Insurance: Lessons from the Savings and Loan Crisis	Michael Dotsey Anatoli Kuprianov
1989	The Future of Deposit Insurance: An Analysis of the Alternatives	Anatoli Kuprianov David L. Mengle
1989	Banking Under Changing Rules: The Fifth District Since 1970	David L. Mengle
1988	International Risk-Based Capital Standard: History and Explanation	Malcolm C. Alfriend
1987	A Review of Bank Performance in the Fifth District, 1986	David L. Mengle John R. Walter
1985	The Rules versus Discretion Debate over Monetary Policy in the 1920s	Robert L. Hetzel
1985	The Monetary Control Act and the Role of the Federal Reserve in the Interbank Clearing Market	Anatoli Kuprianov
1984	A Review of Bank Performance in the Fifth District, 1983	F. Ward McCarthy, Jr.
1984	The Evolution of the Bank Regulatory Structure: A Reappraisal	F. Ward McCarthy, Jr.
1979	A Summary of the International Banking Act of 1978	John P. Segala
1978	Regulation Q and the Behavior of Savings and Small Time Deposits at Commercial Banks and the Thrift Institutions	Timothy Q. Cook
1977	Bank Capital Adequacy: Perspectives and Prospects	Bruce J. Summers
1976	FDIC Policy Toward Bank Failures	Walter A. Varvel
1975	The Classical Concept of the Lender of Last Resort	Thomas M. Humphrey

Paper	Title	Author(s)
13-03 March 2013	Banker Compensation and Bank Risk Taking: The Organizational Economics View	Arantxa Jarque Edward S. Prescott
11-09 December 2011	Loan Loss Reserves, Accounting Constraints, and Bank Ownership Structure	Eliana Balla Morgan J. Rose
11-07 November 2011	Contingent Capital: The Trigger Problem	Edward S. Prescott
11-05 September 2011	Mortgage Defaults	Juan Carlos Hatchondo Leonardo Martinez Juan M. Sanchez
11-01R March 2011	An Experimental Analysis of Contingent Capital Triggering Mechanisms (Revised Oct. 2011)	Douglas Davis Edward S. Prescott Oleg Korenok
10-16 October 2010	Optimal Bonuses and Deferred Pay for Bank Employees: Implications of Hidden Actions with Persistent Effects in Time	Arantxa Jarque Edward S. Prescott
10-10 May 2010	Housing Default: Theory Works and So Does Policy	Allen C. Goodman Brent C Smith
09-11 August 2009	Are Harsh Penalties for Default Really Better?	Kartik B. Athreya Xuan S. Tam Eric R. Young
09-10R July 2009	Recourse and Residential Mortgage Default: Theory and Evidence from U.S. States (Revised: June 2010)	Andra C. Ghent Marianna Kudlyak
09-8 May 2009	The Consolidation of Financial Market Regulation: Pros, Cons, and Implications for the United States	Sabrina R. Pellerin John R. Walter Patricia E. Wescott
07-2 March 2007	Bank Runs and Institutions: The Perils of Intervention	Huberto M. Ennis Todd Keister
06-12 November 2006	Market-Based Regulation and the Informational Content of Prices	Philip Bond Itay Goldstein Edward S. Prescott
05-5 July 2005	Should the FDIC Worry about the FHLB? The Impact of Federal Home Loan Bank Advances on the Bank Insurance Fund	Rosalind L. Bennett Mark D. Vaughan Timothy J. Yeager
04-3 March 2004	Bank Runs and Investment Decisions Revisited	Huberto M. Ennis Todd Keister
04-2 February 2004	State-Contingent Bank Regulation With Unobserved Actions and Unobserved Characteristics	David A. Marshall Edward S. Prescott
02-1 September 2002	The Macroeconomics of U.S. Consumer Bankruptcy Choice: Chapter 7 or Chapter 13?	Wenli Li Pierre-Daniel G. Sarte
99-2 March 1999	Limited Commitment and Central Bank Lending	Marvin Goodfriend Jeffrey M. Lacker
90-5 June 1990	Costs and Technical Change: Effects from Bank Deregulation	David B. Humphrey
89-4 October 1989	The Feasibility of Market Value Accounting for Commercial Banks	David L. Mengle
88-2 May 1988	Legal and Regulatory Reform in Electronic Payments: An Evaluation of Finality of Payment Rules	David L. Mengle
88-1 April 1988	Financial Deregulation, Monetary Policy, and Central Banking	Marvin Goodfriend Robert G. King
87-4 October 1987	The Economic Effects of Corporate Taxes in a Stochastic Growth Model	Michael Dotsey
76-1 July 1976	Bank Management, Competition, and Interest Rates: A Portfolio Model of Discount Window Activity	William D. Jackson
74-5 September 1974	Commercial Banking Performance and Structure: A Factor Analysis Approach	William D. Jackson
73-1 May 1973	Simulations of Marginal Reserve Requirements on Large Denomination Certificates of Deposit in the FRB Model	Philip H. Davidson

Essay	Title	Author(s)
12-09 September 2012	Can Orderly Liquidation Solve the Problems of Bailouts and Bankruptcies?	Betty Joyce Nash Sabrina R. Pellerin John R. Walter
12-03 March 2012	Loan Loss Reserve Accounting and Bank Behavior	Eliana Balla Morgan J. Rose Jessie Romero
11-04 April 2011	Identifying Systemically Important Financial Institutions	David A. Price John R. Walter
10-09 September 2010	The Effects of Local Demographic Characteristics and State-Level Legislation on Foreclosure Rates	Ross Lawrence Brent C Smith
10-06 June 2010	Now How Large Is the Safety Net?	Jeffrey M. Lacker John A. Weinberg
09-11 November 2009	Rolling Back the Financial Safety Net	Robert L. Hetzel Stephen Slivinski
09-09 September 2009	Deterring Default: Why Some State Laws Decrease the Probability of Mortgage Foreclosures	Andra C. Ghent Marianna Kudlyak Stephen Slivinski
09-07 July 2009	Systemic Risk Regulation and the "Too Big to Fail" Problem	Borys Grochulski Stephen Slivinski
09-05 May 2009	The Costs and Benefits of Bank Supervisory Disclosure	Edward S. Prescott Stephen Slivinski

Year	Title	Author(s)
2009	Systemic Risk and the Pursuit of Efficiency	Kartik B. Athreya
2008	The Financial Crisis: Toward an Explanation and Policy Response	Aaron Steelman John A. Weinberg
2002	The Accounting for Corporate Behavior	John A. Weinberg
2001	The Economics of Financial Privacy	Jeffrey M. Lacker

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