Are Nonbank Financial Institutions Systemic? - Liberty Street Economics
Aradillas Fernandez, Hiti, and Sarkar provide a quantitative assessment of systemic risk in the nonbank financial sector.| Liberty Street Economics
In a previous post, we provided background information about the emergence of tokenized investment funds and their use cases. These use cases are currently limited to the digital asset ecosystem. However, the recent approval of cryptocurrency exchange-traded funds (ETFs) and the passage of the GENIUS Act raise concerns about the impact of these tokenized investment fund to the broader financial system. In this post, we assess this impact by considering three economic mechanisms based in part ...| Liberty Street Economics
A blockchain is a distributed database where independent computers across the world maintain identical copies of a transaction record, updating it only when the network reaches consensus on new transactions—making the history transparent and extraordinarily difficult to alter. Historically, bonds have traded almost entirely in over-the-counter (OTC) markets, while equities and money market fund shares have largely settled through centralized infrastructures such as stock exchanges and cen...| Liberty Street Economics
Global factors, like monetary policy rates from advanced economies and risk conditions, drive fluctuations in volumes of international capital flows and put pressure on exchange rates. The components of international capital flows that are described as global liquidity—consisting of cross-border bank lending and financing of issuance of international debt securities—have sensitivities to risk conditions that have evolved considerably over time. This risk sensitivity has been driven, in pa...| Liberty Street Economics
The Federal Reserve's mission and regional structure ask that it always work to better understand local and regional economic activity. This requires gauging the economic impact of localized events, including natural disasters. Despite the economic significance of natural disasters—flowing often from their human toll—there are currently no publicly available data on the damages they cause in the United States at the county level.| Liberty Street Economics
Aradillas Fernandez, Hiti, and Sarkar provide a quantitative assessment of systemic risk in the nonbank financial sector.| 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
