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Notes, Papers & Presentations

RESET
May 11, 2017

Francisco Covas

Francisco Covas

Senior Vice President, Head of Research

Download CV
Francisco Covas is currently Senior Vice President, Head of Research at the Bank Policy Institute. Prior to joining BPI, Mr. Covas served as Senior Vice President and Deputy Head of Research at the Clearing House Association, where he helped oversee research and analysis to support the advocacy of the Association on behalf of the owner banks. Prior to joining the Clearing House in 2016, Mr. Covas was an assistant director of the Division of Monetary Affairs at the Federal Reserve Board where he supervised a team focused on the effects of changes in bank regulation on monetary policy, on the role of banks in the transmission of monetary policy, and on the development and validation of stress testing models. Prior to that, he was an economist in the Division of Banking Supervision & Regulation and focused on a range of capital, liquidity and other regulatory initiatives. Mr. Covas earned a Ph.D. in economics from University of California, San Diego in 2004 and a B.A. from the Universidade Nova de Lisboa, Portugal in 1997. He has written extensively on liquidity rules, capital regulation and stress testing and has published research on a wide range of journals, including American Economic Review, Journal of Money Credit and Banking, International Journal of Forecasting, among other academic journals.

Articles Written by Francisco Covas

December 12

After Adjusting for Economic Growth, as Pledged, GSIB Surcharges Should be 50 Basis Points Lower

November 26

The GSIB Surcharge and Repo Markets

November 20

Quantifying Just How High U.S. Capital Requirements Are

Are the Supervisory Bank Stress Tests Constraining the Supply of Credit to Small Businesses?

The Clearing House (TCH) published a new research note “Are the Supervisory Bank Stress Tests Constraining the Supply of Credit to Small Businesses?” that attempts to identify the impact of… Continue Reading

Bank Capital and Stress Testing (Policy), Bank Capital and Stress Testing (Research), Bank Conditions and Credit Availability, Research

January 31, 2017

Francisco Covas

Francisco Covas

Senior Vice President, Head of Research

Download CV
Francisco Covas is currently Senior Vice President, Head of Research at the Bank Policy Institute. Prior to joining BPI, Mr. Covas served as Senior Vice President and Deputy Head of Research at the Clearing House Association, where he helped oversee research and analysis to support the advocacy of the Association on behalf of the owner banks. Prior to joining the Clearing House in 2016, Mr. Covas was an assistant director of the Division of Monetary Affairs at the Federal Reserve Board where he supervised a team focused on the effects of changes in bank regulation on monetary policy, on the role of banks in the transmission of monetary policy, and on the development and validation of stress testing models. Prior to that, he was an economist in the Division of Banking Supervision & Regulation and focused on a range of capital, liquidity and other regulatory initiatives. Mr. Covas earned a Ph.D. in economics from University of California, San Diego in 2004 and a B.A. from the Universidade Nova de Lisboa, Portugal in 1997. He has written extensively on liquidity rules, capital regulation and stress testing and has published research on a wide range of journals, including American Economic Review, Journal of Money Credit and Banking, International Journal of Forecasting, among other academic journals.

Articles Written by Francisco Covas

December 12

After Adjusting for Economic Growth, as Pledged, GSIB Surcharges Should be 50 Basis Points Lower

November 26

The GSIB Surcharge and Repo Markets

November 20

Quantifying Just How High U.S. Capital Requirements Are

New Research Estimates Credit Allocation Encouraged by CCAR Stress Tests

Mortgage and small business loans are hard hit by stress tests The Clearing House published a new research note The Capital Allocation Inherent in the Federal Reserve’s Capital Stress Test that attempts… Continue Reading

Bank Capital and Stress Testing (Policy), Bank Capital and Stress Testing (Research), Bank Conditions and Credit Availability, Research

December 16, 2016

Francisco Covas

Francisco Covas

Senior Vice President, Head of Research

Download CV
Francisco Covas is currently Senior Vice President, Head of Research at the Bank Policy Institute. Prior to joining BPI, Mr. Covas served as Senior Vice President and Deputy Head of Research at the Clearing House Association, where he helped oversee research and analysis to support the advocacy of the Association on behalf of the owner banks. Prior to joining the Clearing House in 2016, Mr. Covas was an assistant director of the Division of Monetary Affairs at the Federal Reserve Board where he supervised a team focused on the effects of changes in bank regulation on monetary policy, on the role of banks in the transmission of monetary policy, and on the development and validation of stress testing models. Prior to that, he was an economist in the Division of Banking Supervision & Regulation and focused on a range of capital, liquidity and other regulatory initiatives. Mr. Covas earned a Ph.D. in economics from University of California, San Diego in 2004 and a B.A. from the Universidade Nova de Lisboa, Portugal in 1997. He has written extensively on liquidity rules, capital regulation and stress testing and has published research on a wide range of journals, including American Economic Review, Journal of Money Credit and Banking, International Journal of Forecasting, among other academic journals.

Articles Written by Francisco Covas

December 12

After Adjusting for Economic Growth, as Pledged, GSIB Surcharges Should be 50 Basis Points Lower

November 26

The GSIB Surcharge and Repo Markets

November 20

Quantifying Just How High U.S. Capital Requirements Are

Bank Capitalization and Loan Growth

In this TCH research note we show that the positive relationship between bank capitalization and the growth of lending is driven by the amount of capital in excess of capital… Continue Reading

Bank Capital and Stress Testing (Policy), Bank Capital and Stress Testing (Research), Bank Conditions and Credit Availability, Research

November 1, 2016

Francisco Covas

Francisco Covas

Senior Vice President, Head of Research

Download CV
Francisco Covas is currently Senior Vice President, Head of Research at the Bank Policy Institute. Prior to joining BPI, Mr. Covas served as Senior Vice President and Deputy Head of Research at the Clearing House Association, where he helped oversee research and analysis to support the advocacy of the Association on behalf of the owner banks. Prior to joining the Clearing House in 2016, Mr. Covas was an assistant director of the Division of Monetary Affairs at the Federal Reserve Board where he supervised a team focused on the effects of changes in bank regulation on monetary policy, on the role of banks in the transmission of monetary policy, and on the development and validation of stress testing models. Prior to that, he was an economist in the Division of Banking Supervision & Regulation and focused on a range of capital, liquidity and other regulatory initiatives. Mr. Covas earned a Ph.D. in economics from University of California, San Diego in 2004 and a B.A. from the Universidade Nova de Lisboa, Portugal in 1997. He has written extensively on liquidity rules, capital regulation and stress testing and has published research on a wide range of journals, including American Economic Review, Journal of Money Credit and Banking, International Journal of Forecasting, among other academic journals.

Articles Written by Francisco Covas

December 12

After Adjusting for Economic Growth, as Pledged, GSIB Surcharges Should be 50 Basis Points Lower

November 26

The GSIB Surcharge and Repo Markets

November 20

Quantifying Just How High U.S. Capital Requirements Are

Why Have Banks’ Market-to-Book Ratios Declined?

A new TCH research note shows that most of the decline in price-to-tangible book value of equity in the post-crisis period is driven by the fall in banks’ profitability as… Continue Reading

Bank Capital and Stress Testing (Policy), Bank Capital and Stress Testing (Research), Bank Liquidity (Research), Research

September 21, 2016

Bill Nelson

Bill Nelson

Executive Vice President and Chief Economist

Download CV
William Nelson is an Executive Vice President and Chief Economist at the Bank Policy Institute. Previously he served as Executive Managing Director, Chief Economist, and Head of Research at the Clearing House Association and Chief Economist of the Clearing House Payments Company. Mr. Nelson contributed to and oversaw research and analysis to support the advocacy of the Association on behalf of TCH’s owner banks. Prior to joining The Clearing House in 2016, Mr. Nelson was a deputy director of the Division of Monetary Affairs at the Federal Reserve Board where his responsibilities included monetary policy analysis, discount window policy analysis, and financial institution supervision. Mr. Nelson attended Federal Open Market Committee meetings and regularly briefed the Board and FOMC. He was a member of the Large Institution Supervision Coordinating Committee (LISCC) and the steering committee of the Comprehensive Liquidity Analysis and Review (CLAR). He has chaired and participated in several BIS working groups on the design of liquidity regulations and most recently chaired the CGFS-Markets Committee working group on regulatory change and monetary policy. Mr. Nelson joined the Board in 1993 as an economist in the Banking section of Monetary Affairs. In 2004, he was the founding chief of the new Monetary and Financial Stability section of Monetary Affairs. In 2007 and 2008, he visited the Bank for International Settlements, in Basel, Switzerland, where his responsibilities included analyzing central banks’ responses to the financial crisis and researching the use of forward guidance by central banks. He returned to the Board in the fall of 2008 where he helped design and manage several of the Federal Reserve’s emergency liquidity facilities. Mr. Nelson earned a Ph.D., an M.S., and an M.A. in economics from Yale University and a B.A. from the University of Virginia. He has published research on a wide range of topics including monetary policy rules; monetary policy communications; and the intersection of monetary policy, lender of last resort policy, financial stability, and bank supervision and regulation.

Articles Written by Bill Nelson

October 24

Excluding Reserves from the Leverage Ratio Would Make Repo Market Volatility Worse

October 18

Constructive Disambiguity About the Discount Window

October 1

Two Little-Noticed and Self-Inflicted Causes of the Fed’s Current Monetary Policy Implementation Predicament

Liquidity and Leverage Regulation, Money Market Structure, and the Federal Reserve’s Monetary Policy Framework in the Longer Run

This note demonstrates that recent changes in bank regulation will have foreseeable and material consequences for the structure of, and pricing in, money markets. We also show that new bank… Continue Reading

Bank Capital and Stress Testing (Policy), Bank Capital and Stress Testing (Research), Bank Liquidity (Policy), Financial Markets, Monetary Policy + The Economy, Research

August 9, 2016

Bill Nelson, Francisco Covas

Bill Nelson

Executive Vice President and Chief Economist

Download CV
William Nelson is an Executive Vice President and Chief Economist at the Bank Policy Institute. Previously he served as Executive Managing Director, Chief Economist, and Head of Research at the Clearing House Association and Chief Economist of the Clearing House Payments Company. Mr. Nelson contributed to and oversaw research and analysis to support the advocacy of the Association on behalf of TCH’s owner banks. Prior to joining The Clearing House in 2016, Mr. Nelson was a deputy director of the Division of Monetary Affairs at the Federal Reserve Board where his responsibilities included monetary policy analysis, discount window policy analysis, and financial institution supervision. Mr. Nelson attended Federal Open Market Committee meetings and regularly briefed the Board and FOMC. He was a member of the Large Institution Supervision Coordinating Committee (LISCC) and the steering committee of the Comprehensive Liquidity Analysis and Review (CLAR). He has chaired and participated in several BIS working groups on the design of liquidity regulations and most recently chaired the CGFS-Markets Committee working group on regulatory change and monetary policy. Mr. Nelson joined the Board in 1993 as an economist in the Banking section of Monetary Affairs. In 2004, he was the founding chief of the new Monetary and Financial Stability section of Monetary Affairs. In 2007 and 2008, he visited the Bank for International Settlements, in Basel, Switzerland, where his responsibilities included analyzing central banks’ responses to the financial crisis and researching the use of forward guidance by central banks. He returned to the Board in the fall of 2008 where he helped design and manage several of the Federal Reserve’s emergency liquidity facilities. Mr. Nelson earned a Ph.D., an M.S., and an M.A. in economics from Yale University and a B.A. from the University of Virginia. He has published research on a wide range of topics including monetary policy rules; monetary policy communications; and the intersection of monetary policy, lender of last resort policy, financial stability, and bank supervision and regulation.

Articles Written by Bill Nelson

October 24

Excluding Reserves from the Leverage Ratio Would Make Repo Market Volatility Worse

October 18

Constructive Disambiguity About the Discount Window

October 1

Two Little-Noticed and Self-Inflicted Causes of the Fed’s Current Monetary Policy Implementation Predicament

Francisco Covas

Senior Vice President, Head of Research

Download CV
Francisco Covas is currently Senior Vice President, Head of Research at the Bank Policy Institute. Prior to joining BPI, Mr. Covas served as Senior Vice President and Deputy Head of Research at the Clearing House Association, where he helped oversee research and analysis to support the advocacy of the Association on behalf of the owner banks. Prior to joining the Clearing House in 2016, Mr. Covas was an assistant director of the Division of Monetary Affairs at the Federal Reserve Board where he supervised a team focused on the effects of changes in bank regulation on monetary policy, on the role of banks in the transmission of monetary policy, and on the development and validation of stress testing models. Prior to that, he was an economist in the Division of Banking Supervision & Regulation and focused on a range of capital, liquidity and other regulatory initiatives. Mr. Covas earned a Ph.D. in economics from University of California, San Diego in 2004 and a B.A. from the Universidade Nova de Lisboa, Portugal in 1997. He has written extensively on liquidity rules, capital regulation and stress testing and has published research on a wide range of journals, including American Economic Review, Journal of Money Credit and Banking, International Journal of Forecasting, among other academic journals.

Articles Written by Francisco Covas

December 12

After Adjusting for Economic Growth, as Pledged, GSIB Surcharges Should be 50 Basis Points Lower

November 26

The GSIB Surcharge and Repo Markets

November 20

Quantifying Just How High U.S. Capital Requirements Are

TCH Publishes Research Note on Shortcoming of the Leverage Ratio

A new TCH research note shows that the leverage ratio is a poor measure of bank risk, with many banks that had excellent leverage ratios nevertheless failing during the crisis. … Continue Reading

Bank Capital and Stress Testing (Policy), Bank Capital and Stress Testing (Research), Research

June 3, 2016

Francisco Covas

Francisco Covas

Senior Vice President, Head of Research

Download CV
Francisco Covas is currently Senior Vice President, Head of Research at the Bank Policy Institute. Prior to joining BPI, Mr. Covas served as Senior Vice President and Deputy Head of Research at the Clearing House Association, where he helped oversee research and analysis to support the advocacy of the Association on behalf of the owner banks. Prior to joining the Clearing House in 2016, Mr. Covas was an assistant director of the Division of Monetary Affairs at the Federal Reserve Board where he supervised a team focused on the effects of changes in bank regulation on monetary policy, on the role of banks in the transmission of monetary policy, and on the development and validation of stress testing models. Prior to that, he was an economist in the Division of Banking Supervision & Regulation and focused on a range of capital, liquidity and other regulatory initiatives. Mr. Covas earned a Ph.D. in economics from University of California, San Diego in 2004 and a B.A. from the Universidade Nova de Lisboa, Portugal in 1997. He has written extensively on liquidity rules, capital regulation and stress testing and has published research on a wide range of journals, including American Economic Review, Journal of Money Credit and Banking, International Journal of Forecasting, among other academic journals.

Articles Written by Francisco Covas

December 12

After Adjusting for Economic Growth, as Pledged, GSIB Surcharges Should be 50 Basis Points Lower

November 26

The GSIB Surcharge and Repo Markets

November 20

Quantifying Just How High U.S. Capital Requirements Are

TCH Publishes Research Note on the Methodology Used to Calibrate the Single-Counterparty Credit Limit

The Clearing House (TCH) Research Department has published a note on the methodology used to calibrate the single-counterparty credit limits (“SCCL”) for domestic and foreign bank holding companies (BHCs) with… Continue Reading

Bank Capital and Stress Testing (Policy), Bank Capital and Stress Testing (Research), Research

May 19, 2016

Francisco Covas

Francisco Covas

Senior Vice President, Head of Research

Download CV
Francisco Covas is currently Senior Vice President, Head of Research at the Bank Policy Institute. Prior to joining BPI, Mr. Covas served as Senior Vice President and Deputy Head of Research at the Clearing House Association, where he helped oversee research and analysis to support the advocacy of the Association on behalf of the owner banks. Prior to joining the Clearing House in 2016, Mr. Covas was an assistant director of the Division of Monetary Affairs at the Federal Reserve Board where he supervised a team focused on the effects of changes in bank regulation on monetary policy, on the role of banks in the transmission of monetary policy, and on the development and validation of stress testing models. Prior to that, he was an economist in the Division of Banking Supervision & Regulation and focused on a range of capital, liquidity and other regulatory initiatives. Mr. Covas earned a Ph.D. in economics from University of California, San Diego in 2004 and a B.A. from the Universidade Nova de Lisboa, Portugal in 1997. He has written extensively on liquidity rules, capital regulation and stress testing and has published research on a wide range of journals, including American Economic Review, Journal of Money Credit and Banking, International Journal of Forecasting, among other academic journals.

Articles Written by Francisco Covas

December 12

After Adjusting for Economic Growth, as Pledged, GSIB Surcharges Should be 50 Basis Points Lower

November 26

The GSIB Surcharge and Repo Markets

November 20

Quantifying Just How High U.S. Capital Requirements Are

TCH Research Note Compares United States and European Union Stress Tests

The Clearing House Association (TCH) Research Department has published a note on a comparison between United States and European Union Stress Tests.  First, the research note finds that the European… Continue Reading

Bank Capital and Stress Testing (Policy), Bank Capital and Stress Testing (Research), Research

April 4, 2016

Bill Nelson

Bill Nelson

Executive Vice President and Chief Economist

Download CV
William Nelson is an Executive Vice President and Chief Economist at the Bank Policy Institute. Previously he served as Executive Managing Director, Chief Economist, and Head of Research at the Clearing House Association and Chief Economist of the Clearing House Payments Company. Mr. Nelson contributed to and oversaw research and analysis to support the advocacy of the Association on behalf of TCH’s owner banks. Prior to joining The Clearing House in 2016, Mr. Nelson was a deputy director of the Division of Monetary Affairs at the Federal Reserve Board where his responsibilities included monetary policy analysis, discount window policy analysis, and financial institution supervision. Mr. Nelson attended Federal Open Market Committee meetings and regularly briefed the Board and FOMC. He was a member of the Large Institution Supervision Coordinating Committee (LISCC) and the steering committee of the Comprehensive Liquidity Analysis and Review (CLAR). He has chaired and participated in several BIS working groups on the design of liquidity regulations and most recently chaired the CGFS-Markets Committee working group on regulatory change and monetary policy. Mr. Nelson joined the Board in 1993 as an economist in the Banking section of Monetary Affairs. In 2004, he was the founding chief of the new Monetary and Financial Stability section of Monetary Affairs. In 2007 and 2008, he visited the Bank for International Settlements, in Basel, Switzerland, where his responsibilities included analyzing central banks’ responses to the financial crisis and researching the use of forward guidance by central banks. He returned to the Board in the fall of 2008 where he helped design and manage several of the Federal Reserve’s emergency liquidity facilities. Mr. Nelson earned a Ph.D., an M.S., and an M.A. in economics from Yale University and a B.A. from the University of Virginia. He has published research on a wide range of topics including monetary policy rules; monetary policy communications; and the intersection of monetary policy, lender of last resort policy, financial stability, and bank supervision and regulation.

Articles Written by Bill Nelson

October 24

Excluding Reserves from the Leverage Ratio Would Make Repo Market Volatility Worse

October 18

Constructive Disambiguity About the Discount Window

October 1

Two Little-Noticed and Self-Inflicted Causes of the Fed’s Current Monetary Policy Implementation Predicament

Understanding the Facts Regarding the Ongoing Debate about “Too Big to Fail”

No bank should be “too big to fail,” and the financial crisis in 2008 demonstrated that financial reforms were necessary to prevent taxpayers from ever again having to step in… Continue Reading

Bank Capital and Stress Testing (Policy), Bank Capital and Stress Testing (Research), Research, Systemic Risk and TBTF

March 16, 2016

Francisco Covas

Francisco Covas

Senior Vice President, Head of Research

Download CV
Francisco Covas is currently Senior Vice President, Head of Research at the Bank Policy Institute. Prior to joining BPI, Mr. Covas served as Senior Vice President and Deputy Head of Research at the Clearing House Association, where he helped oversee research and analysis to support the advocacy of the Association on behalf of the owner banks. Prior to joining the Clearing House in 2016, Mr. Covas was an assistant director of the Division of Monetary Affairs at the Federal Reserve Board where he supervised a team focused on the effects of changes in bank regulation on monetary policy, on the role of banks in the transmission of monetary policy, and on the development and validation of stress testing models. Prior to that, he was an economist in the Division of Banking Supervision & Regulation and focused on a range of capital, liquidity and other regulatory initiatives. Mr. Covas earned a Ph.D. in economics from University of California, San Diego in 2004 and a B.A. from the Universidade Nova de Lisboa, Portugal in 1997. He has written extensively on liquidity rules, capital regulation and stress testing and has published research on a wide range of journals, including American Economic Review, Journal of Money Credit and Banking, International Journal of Forecasting, among other academic journals.

Articles Written by Francisco Covas

December 12

After Adjusting for Economic Growth, as Pledged, GSIB Surcharges Should be 50 Basis Points Lower

November 26

The GSIB Surcharge and Repo Markets

November 20

Quantifying Just How High U.S. Capital Requirements Are

TCH Publishes Research Note on the 2016 Federal Reserve Stress Testing Scenarios

TCH’s Research Department has published a note on the 2016 Federal Reserve Stress Testing Scenarios. This research note provides an overview of the design of the supervisory stress test scenarios… Continue Reading

Bank Capital and Stress Testing (Policy), Bank Capital and Stress Testing (Research), Research

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