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Supervision News Flash

Research in Banking

The Richmond Fed offers a number of publications that provide the latest research on a variety of economic topics. Recent articles related to banking include:

  • Small versus Large Banks. Small banks have long been thought to have access to unique business cycle information not available to large banks, resulting in differences in their net profit margins. A recent study from the Richmond Fed finds evidence that small and large banks do respond differently to the business cycle, but those differences are due to small banks’ ability to keep their funding costs relatively stable rather than access to relevant information gained from their long-term relationships with borrowers.
  • How Do Banks Use the Discount Window? Richmond Fed economist Huberto Ennis discusses the importance of studying when and why banks borrow from the Fed.
  • Likelihood of Interest Rates Returning to Zero. Richmond Fed economists Thomas Lubik and Christian Matthes estimate that there is a one in four chance of interest rates returning to near-zero levels over the next ten years.

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