The first post in this series discussed the potential exposure of banks to the open-end funds sector, by virtue of commonalities in asset holdings that expose banks to balance sheet losses in the event of an asset fire sale by these funds. In this post, we summarize the findings reported in a recent paper of ours, in which we expand the analysis to consider a broad cross section of non-bank financial institution (NBFI) segments. We unveil an innovative monitoring insight: the network of inter...| Liberty Street Economics
The authors consider the systemic implications of the observed build-up of bank-NBFI connections associated with the growth of NBFIs.| Liberty Street Economics
Nicola Cetorelli is the head of Financial Intermediation. Prior to joining the New York Fed, he was a Senior Economist at the Federal Reserve Bank of Chicago. His research has focused on financial intermediation activities, both banks and nonbanks. He has published extensively in scholarly journals, among which The Journal of Finance, Journal of Economic Theory, American Economic Review, Journal of International Economics. He has also written many articles in various policy journals and book ...| www.newyorkfed.org