2023 Banking Turmoil
Changing Accounting Rules for Banks can Incentivize Better Risk Mitigation
Accounting procedures for held-to-maturity assets in banks allows them to avoid taking losses. Research from professors Bischof, Laux, and Leuz shows how forcing banks...
Destabilizing Digital “Bank Walks”
Bank regulators have always assumed that bank deposits are ‘sticky,’ but the advent of digital banking is changing that. New research focuses not on...
A Directorship at a Federal Reserve Bank is Good News for Banks, but May be Bad News for the Fed
Far before the collapse of SVB, I provided systematic evidence that banks appear to benefit from their directorships on Federal Reserve Banks. The fact...
The Fed and Bank Failures
Viral Acharya and Raghuram Rajan explain how quantitative easing contributed to the problems underlying the recent bank failures such as that of Silicon Valley...
Letters that Matter: How Interest Groups Shape Financial Legislation
Members of Congress are inundated with an avalanche of correspondence on a daily basis. But what persuades them to heed the call? Recent research...
How Many Banks Are at Risk of Insolvency Right Now?
Given the recent banking turmoil and failure of SVB and Signature and issues in First Republic, it is important to understand the risk to...
Nobel Laureate Douglas Diamond on How the Fed Could Have Prevented SVB’s Collapse
Nobel Laureate and bank run expert Douglas Diamond argues that the Fed’s choice to signal long-term low interest rates, and then suddenly reverse course...
How Do We Avoid the Next SVB?
Anil Kashyap explains why the collapse of Silicon Valley Bank and Signature Bank are the result of the failure of the Dodd-Frank Act to...
