Banking is getting easier, but is it riskier?

Banking is getting easier, but is it riskier?
- June 2, 2025
- Jack Liebersohn, economics, Chicago Booth Review, June 2, 2025
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As the Fed increased rates, online banks responded quickly and drew in deposits, while brick-and-mortar banks were slower to react and saw outflows. One observation is that the ease of bank transfers appears to have changed how the Fed’s monetary policy is absorbed in the market, suggests research by the Ohio State University’s Isil Erel, University of California, Irvine’s Jack Liebersohn [and others]. … The researchers suggest that policymakers need to account for this when making assumptions about the speed at and way in which monetary-policy changes will be absorbed in the economy.
For the full story, please visit https://www.chicagobooth.edu/review/banking-is-getting-easier-is-it-riskier.
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