The 36th Annual Conference on Bank Structure & Competition

Since the early 1960s, the Federal Reserve Bank of Chicago’s Conference on Bank Structure and Competition has served as a forum for academics, regulators and industry participants to debate current issues affecting the financial services industry. Each year the purpose of the conference is to continue that tradition. This retrospective on the history and evolution of the conference reviews the past four decades of conferences.

 

The primary motivating factor for the conference was the passage of the 1960 Bank Merger Act and the U.S. versus Philadelphia National Bank Supreme Court decision. Suddenly, bank regulatory agencies were required to consider competitive factors in addition to banking factors when evaluating bank merger applications. Each of the Federal Reserve Banks was encouraged to survey the existing literature on bank structure and develop its own research agendas on these issues. This year's theme was Financial Safety Net Issues.


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05/03/00
7:30 AM
Registration and Continental Breakfast
8:25 AM
Welcoming Remarks
William C Hunter, Senior Vice President, Federal Reserve Bank of Chicago
8:30 AM
Valuing the Bank Relationship
Moderator and Discussant
Rafael Repullo, Director, Centro de Estudios Monetarios y Financieros (Bank of Spain, Center for Monetary and Financial Studies)
  • The Information Revolution and Small Business Lending: Does Distance Still Matter?
Mitchell A Petersen, Northwestern University
Raghuram G Rajan, Chicago University
  • Relationship Banking, Loan Specialization, and Competition
Robert Hauswald, Indiana University
Robert Marquez, University of Maryland
  • Bank Competition and Firm Creation
Emilia Bonaccorsi di Patti, Bank of Italy
Giovanni Dell'Ariccia, International Monetary Fund
10:00 AM
Break
10:20 AM
Implications from Bank Diversification
Moderator and Discussant
Allen Berger, Board of Governors of the Federal Reserve System
  • Bank Underwriting of Corporate Bonds: Evidence from Post-1994 Japan
Yasushi Hamao, University of Southern California
Takeo Hoshi, University of California, San Diego
  • Implications From Bank Diversification
Dario Focarelli, Bank of Italy
Alberto Franco Pozzolo, Bank of Italy
  • Are Scale Economics in Banking Elusive or Illusive? Evidence Obtained by Incorporating Capital Structure and Risk Taking into Models of Bank Production
Joseph P Hughes, Rutgers University
Loretta J Mester, Federal Reserve Bank of Philadelphia
Choon-Geol Moon, Hanyang University
12:00 PM
Luncheon
1:20 PM
Lessons from Bank Failures
Moderator and Discussant
Eric Rosengren, Federal Reserve Bank of Boston
  • Corporation Valuation and the Resolution of Bank Insolvency in East Asia
Simeon Djankov, World Bank and CEPR
Jan Jindra, Ohio State University
Leora Klapper, World Bank
  • Are Fiscal Costs of Banking Crises Increased by Poor Resolution Policies?
Patrick Honahon, World Bank
Daniela Klingebiel, World Bank
  • Credit Channel Effects and the Persistence of the U.S. Great Depression
Philipp Hartmann, European Central Bank and Centre for Economic Policy Research (CEPR)
Stefan Straetmans, Maastricht University
Casper G de Vries, Erasmus University Rotterdam
  • Estimating Bilateral Exposures in the German Interbank Market: Is There a Danger of Contagion?
Christian Upper, Deutsche Bundesbank
Andreas Worms, Deutsche Bundesbank
3:10 PM
Break
3:30 PM
Bank Capital Issues
Moderator
Patricia Jackson, Bank of England
  • Bank Capital Regulation as an Incentive Mechanism: Implications for Portfolio Choice
, City University Business School
  • Testing for Market Discipline in the European Banking Industry: Evidence from Subordinated Debt Issues
Andrea Sironi, Universita Commerciale Luigi Bocconi
  • Managerial Incentives and the Efficiency of Capital Allocation in U.S. Commercial Banking
Joseph P Hughes, Rutgers University
William W Lang, Office of the Comptroller of the Currency
Choon-Geol Moon, Hanyang University
Michael S Pagano, Villanova University
5:15 PM
Reception
05/04/00
7:00 AM
Registration and Continental Breakfast
8:15 AM
Welcoming Remarks
Michael H Moskow, President and Chief Executive Officer, Federal Reserve Bank of Chicago
8:25 AM
Keynote Address
Alan Greenspan, Chairman, Board of Governors of the Federal Reserve System
9:20 AM
Break
9:50 AM
Theme Panel: Financial Safety Net Issues
Moderator
William C Hunter, Senior Vice President and Director of Research, Federal Reserve Bank of Chicago
Speakers
Kenneth A Guenther, Executive Vice President, Independent Community Bankers of America
Robert E Litan, Vice President and Director, Economic Studies, and Cabot Family Chair in Economics, Brookings Institution
Laurence H Meyer, Governor, Board of Governors of the Federal Reserve System
Arthur J Murton, Director, Division of Insurance, Federal Deposit Insurance Corporation
Thomas H Stanton, Fellow, Center for the Study of American Government, Johns Hopkins University
12:10 PM
Luncheon
Keynote
The Honourable Jim Peterson, Secretary of State (International Financial Institutions), Canadian Department of Finance
1:55 PM
The Impact of GSEs on the Underlying Markets
Moderator
Alex J Pollock, President and CEO, Federal Home Loan Bank of Chicago
  • The Simple Microeconomics of Government-Sponsored Enterprises
Wayne Passmore, Board of Governors of the Federal Reserve System
Roger Sparks, Mills College
  • The Effects of Purchases of Mortgages and Securitization by Government-Sponsored Enterprises on Mortgage Yield Spreads and Volatility
Alden Toevs, First Manhattan Consulting Group
Andy Naranjo, University of Florida
  • Do Federal Home Loan Bank Membership and Advances Lead to More Bank Risk?
Dusan Stojanovic, Federal Reserve Bank of St. Louis
Mark D Vaughan, Federal Reserve Bank of St. Louis
Timothy J Yeager, Federal Reserve Bank of St. Louis
3:25 PM
Break
3:45 PM
Alternative Deposit Insurance Structures
Moderator
George G Kaufman, John F. Smith, Jr. Professor of Finance and Economics, Loyola University Chicago
  • Developing Effective Deposit Insurance Systems
J P Sabourin, President and Chief Executive Officer, Canada Deposit Insurance Corporation, and Chairman, Financial Stability Forum, Working Group on Deposit
  • How Good Are European Union Deposit Insurance Schemes?
Maximilian J B Hall, Loughborough University
  • Designing Financial Safety Nets to Fit Country Circumstances
Edward J Kane, Boston College
  • Estimating Fair Deposit Insurance Premiums for a Sample of Banks under a New Long-Term Insurance Pricing Methodology
George G Pennacchi, University of Illinois at Urbana-Champaign
5:45 PM
Reception
05/05/00
7:30 AM
Continental Breakfast
8:30 AM
Concurrent Sessions<br />Session A: Bank Business Strategies
Moderator
James T Moser, Federal Reserve Bank of Chicago
  • The Diffusion of a Financial Innovation: An Examination of the Early Adoption of Small Business Credit Scoring
Jalal Akhavein, University of Pennsylvania
W Scott Frame, Federal Reserve Bank of Atlanta
Lawrence J White, New York University
  • Internet-only Banks: Learning Curves and Financial Performance
Robert DeYoung, Federal Reserve Bank of Chicago
  • Recent Trends in Bank Loan Syndications: Evidence for 1995 to 1999
Jonathan D Jones, Office of Thrift Supervision
William W Lang, Office of the Comptroller of the Currency
Peter J Nigro, Office of the Comptroller of the Currency
8:30 AM
Session B: Perusing Regulatory Reform
Moderator
Nicola Cetorelli, Federal Reserve Bank of Chicago
  • Issues of Deposit Insurance Reform
James A Wilcox, Office of the Comptroller of the Currency and University of California, Berkeley
  • Deregulation and Correspondent Banking
James J McAndrews, Federal Reserve Bank of New York
Philip E Strahan, Federal Reserve Bank of New York and Massachusetts Institute of Technology
  • The Competitive Analysis in the Banking Industry No Longer Reflects Reality
Douglas V Austin, Austin Financial Services, Inc.
Craig D Bernard, Austin Financial Services, Inc.
9:45 AM
Concurrent Sessions<br />Session C: Regulatory Incentive Alignment
Moderator
Elijah Brewer III, Federal Reserve Bank of Chicago
  • Size, Charter Value, and Risk in Banking: An International Perspective
Gianni De Nicoló, International Monetary Fund
  • Local Market Entry and Bank Efficiency
Douglas Evanoff, Federal Reserve Bank of Chicago
Evren Örs, Southern Illinois University
  • Local Bank Office Ownership, Deposit Control, Market Structure and Economic Growth
Robert N Collender, U. S. Department of Agriculture
Sherrill L Shaffer, University of Wyoming
9:45 AM
Session D: Financial Crisis
Moderator
David A Marshall, Federal Reserve Bank of Chicago
  • The Costs and Benefits of Moral Suasion: Evidence from the Rescue of Long-Term Capital Management
Craig Furfine, Bank for International Settlements
  • Does Deposit Insurance Increase Banking System Stability? An Empirical Investigation
Asli Demirgüç-Kunt, World Bank
Enrica Detragiache, International Monetary Fund
  • Did Depositors Discipline Financial Institutions in Pre-Crisis Thailand? Implications for the Thai Crisis
Timothy P Opiela, DePaul University
10:00 AM
Break
12:00 PM
Luncheon
Introduction
Michael H Moskow, President and Chief Executive Officer, Federal Reserve Bank of Chicago
Keynote
, Director, Office of Federal Housing Enterprise Oversight (OFHEO)
1:40 PM
GSEs: The Impact on Mortgage Markets
Moderator
Robert R Bliss, Federal Reserve Bank of Chicago
  • Fannie Mae and the Mortgage Market: Setting the Record Straight
Timothy Howard, Executive Vice President and Chief Financial Officer, Federal National Mortgage Association (Fannie Mae)
  • GSEs as Instruments of Federal Policy: Public Benefits and Public Costs
Bert Ely, President, Ely & Company Inc.
  • Costs and Benefits of Mortgage GSEs
James C Miller III, Senior Fellow, Hoover Institution, Stanford University
  • The Structure of Federal Subsidies: Deposit Insurance versus Sponsorship of GSEs
Richard Scott Carnell, Fordham Law School

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A Brief History of the Conference


Since the early 1960s the Federal Reserve Bank of Chicago’s Conference on Bank Structure and Competition has served as a forum for academics, regulators and industry participants to debate current issues affecting the financial services industry. Each year the purpose of the conference is to continue that tradition. This retrospective on the history and evolution of the conference reviews the past four decades of conferences.


Back To Top