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Lakshmi Balasubramanyan |

Research Economist

Lakshmi Balasubramanyan, Research Economist

Lakshmi Balasubramanyan is a research economist in the Supervision and Regulation Department of the Federal Reserve Bank of Cleveland. She is primarily interested in the industrial organization of banking, the impact of banking regulation, and applied financial economics.

Prior to joining the Federal Reserve Bank of Cleveland in 2011, Dr. Balasubramanyan taught finance at Indiana State University. She earned her undergraduate and master of social science degrees in economics from the National University of Singapore. She holds an MS in finance and a PhD in applied economics, both from the Pennsylvania State University.

  • Fed Publications
  • Other Publications
Title Date Publication Author(s) Type

 

 April, 2012 Federal Reserve Bank of Cleveland, working paper no. 12-09 ; David D VanHoose; Working Papers
Abstract: This paper presents a dynamic model of a bank's optimal choices of imposing a binding liquidity-coverage-ratio (LCR) constraint. Our baseline balance-sheet dynamics starts with portfolio separation and no LCR constraint. Under a scenario in which regulators prohibit banks from applying securities to fulfill the LCR constraint, portfolio separation continues to hold, but deposit holdings depend on the extent to which the LCR constraint is binding. When banks are allowed to apply securities toward satisfying the constraint, portfolio separation can break down and lead to ambiguous effects on optimal dynamic loan and deposit paths. Our results indicate that under special cases in which portfolio separation holds, the LCR constraint affects bank-sheet dynamics in ways not previously recognized. As regulators move forward in implementing Basel III style LCR, it is imperative to understand the effects of the LCR constraint on bank balance-sheet dynamics.
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Title Date Publication Author(s) Type
Bank Balance Sheet Dynamics Under a Regulatory Liquidity-Coverage Ratio Constraint

 

 April, 2013 Journal of Macroeconomics, Forthcoming ; David D VanHoose; Journal Article
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Do House Prices Impact Business Starts?

 

 March, 2013 Journal of Housing Economics, vol. 22(1), pp 36-44 ; Edward Coulson; Journal Article
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Generalized Maximum Entropy Approach to Commercial Bank Size and Variance Heterogeneity in Risk

 

 April, 2012 Journal of Economics and Finance, vol 36(3), pp 728-749 ; Spiro Stefanou; Jeffery R Stokes; Journal Article
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Borrower-Lender Distance and its Impact on Small Business Lenders during the Financial Crisis

 

 November, 2010 Bank and Bank Systems, vol. 5(3), pp 61-67 ; Reza Houston; Journal Article
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Declining Cost Efficiency as a Signal of Increasing Bank Vulnerability: An Entropy Based Approach

 

 2010 Applied Economics Letters, vol. 17, no. 18, pp 1769-1778 ; Spiro Stefanou; Jeffery R Stokes; Journal Article
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How Well Is Productivity Being Priced?

 

 2009 Journal of Economics and Finance, vol. 34, no. 4, pp 415-429 ; Ramesh Mohan; Journal Article
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Credit Risk Rating Migration and Unobserved Borrower Heterogeneity

 

 2008 Agricultural Finance Review, vol 8, no. 2, pp 237-253. ; Jonathan B Dressler; Jeffery R Stokes; Journal Article
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