skip navigation

Friday, April 18, 2014

[ – ] Text Size [ + ]  |  Print Page

Loretta J. Mester

Executive Vice President and Director of Research

Phone: (215) 574-3807
Fax: (215) 574-4303
Send an e-mail to Loretta J. Mester E-mail
Curriculum vitae PDF

Concurrent Positions

  • Adjunct Professor of Finance, The Wharton School, University of Pennsylvania
  • Fellow, Wharton Financial Institutions Center
  • Founding Member and Director, Financial Intermediation Research Society
  • Member of the Advisory Committee, Financial Engineering & Banking Society
  • Member of the Finance Department Advisory Council, Fox School of Business and Management, Temple University
  • Member of the Economics Advisory Council, LeBow College of Business, Drexel University
  • Member of the Advisory Board, Financial Intermediation Network of European Studies (FINEST)
  • Practitioner Director, Financial Management Association International (FMA)
  • Visiting Reserve Bank Officer, Division of Monetary Affairs, Board of Governors of the Federal Reserve System, August 2009-November 2009

Editorships

Co-Editor

  • International Journal of Central Banking
  • Journal of Financial Services Research

Associate Editor:

  • Journal of Financial Intermediation
  • Journal of Economics & Business
  • Research in Banking & Finance
  • Journal of Financial Stability

Editorial Board:

  • International Journal of Banking, Accounting and Finance

Other:

  • Member, Association of the International Journal of Central Banking
  • Management Committee Member, International Journal of Central Banking

Publications in Refereed Journals

Other Publications and Speeches

  • "Measuring the Performance of Banks: Theory, Practice, Evidence, and Some Policy Implications," with Joseph P. Hughes, Federal Reserve Bank of Philadelphia Working Paper 13-31, August 2013, invited chapter for Oxford Handbook of Banking, 2nd edition, Oxford University Press: Oxford, UK, eds. Allen Berger, Philip Molyneux, and John Wilson, forthcoming.
  • "A Primer on Market Discipline and Governance of Financial Institutions for Those in a State of Shocked Disbelief," with Joseph P. Hughes, invited chapter for Efficiency and Productivity Growth in the Financial Services Industry, John Wiley & Sons, UK, ed. Fotios Pasiouras, 2013, pp. 19-47.
  • "Has Job Quality Been 'Job One' in the Economic Recovery?" with Elif Sen, Research Rap - Special Report, Federal Reserve Bank of Philadelphia, August 14, 2013, pp. 1-18.
  • "Institutional Structure and Effectiveness of Central Banks During the Financial Crisis: An Empirical Analysis," with Yiwei Fang and Iftekhar Hasan, in Handbook of Central Banking, Financial Regulation and Supervision After the Financial Crisis, Edward Elgar, UK, eds. Sylvester Eijffinger and Donato Masciandaro, 2011, pp. 180-207.
  • "Scale Economies in Banking and Financial Regulatory Reform," The Region, Federal Reserve Bank of Minneapolis, 24 September 2010, pp. 10-13.
  • "Comments on 'A New Metric for Banking Integration in Europe,'" in Europe and the Euro, NBER Books, University of Chicago Press: Chicago, eds. Alberto Alesina and Francesco Giavazzi, 2010, pp. 246-253.
  • "Efficiency in Banking: Theory, Practice and Evidence," with Joseph P. Hughes, invited chapter for The Oxford Handbook of Banking, Oxford University Press: Oxford, UK, eds. Allen Berger, Philip Molyneux, and John Wilson, 2010, pp. 463-485.
  • "Central Bank Policies and Asset Prices," PDF Keynote Address I, SUERF (The European Money and Finance Forum)/Bank of Finland Conference: Housing Markets - A Shelter from the Storm or Cause of the Storm?" Helsinki, Finland, June 4, 2009.
  • "Optimal Industrial Structure in Banking," invited chapter for Handbook of Financial Intermediation and Banking, North Holland, ed. Arnoud Boot and Anjan Thakor, 2008, pp 133-162.
  • "Magyar Nemzeti Bank Research Evaluation Report 2008," with László Halpern, Central Bank of Hungary, March 2008.
  • "Some Thoughts on the Evolution of the Banking System and the Process of Financial Intermediation," Economic Review, Federal Reserve Bank of Atlanta, First and Second Quarters 2007, pp. 67-75. PDF External Link
  • "Working as a Research Economist at the Federal Reserve Bank of Philadelphia," invited article for the Symposium on Research Careers Outside of Academia, Newsletter of the Committee on the Status of Women in the Economics Profession (CSWEP), Spring/Summer 2006, pp. 8-9. PDF
  • "Core Inflation as a Predictor of Total Inflation," with N. Neil K. Khettry, Research Rap - Special Report, Federal Reserve Bank of Philadelphia, April 26, 2006, pp. 1-20. PDF
  • "Bank of Finland Research Evaluation Report 2004," with Philip R. Lane and Juuso Välimäki, Bank of Finland, December 21, 2004.
  • "Was Job Quality ‘Job One' in the Tri-State Region’s Economic Recovery?" with William Olney, Federal Reserve Bank of Philadelphia Regional Highlights, Special Issue, December 2004, pp. 1-25. PDF
  • "Credit Scoring and Securitization of Small Business Loans: Discussion Comments," Business Access to Capital and Credit: A Federal Reserve System Research Conference, Federal Reserve Bank of Chicago Proceedings, March 1999, pp. 644-62.
  • "Abstract of ‘Inside the Black Box: What Explains Differences in the Efficiencies of Financial Institutions?’" Contemporary Finance Digest, 2 (Summer 1998), pp. 70-1.
  • "Comments on Part Five: Competitive Interpenetration: Banking, Commerce and Nonbank Activities," in Universal Banking: Financial System Design Reconsidered, A. Saunders and I. Walter, eds., Irwin: Chicago, 1996, pp. 541-49.
  • "The Real Reasons That Benefits of Teaser Rates May Be Short-Lived," with Paul Calem, Letters to the Editor, American Banker, April 25, 1994.
  • "Economies of Scale and Scope," in Financial Institutions Management: A Modern Perspective, by Anthony Saunders, Richard D. Irwin: Chicago, IL, 1994, p. 230; second edition, 1997, p. 265; third edition, 2002, p. 299.

Federal Reserve Bank of Philadelphia Business Review Articles

Current Working Papers and Manuscripts

  • “Measuring the Performance of Banks: Theory, Practice, Evidence, and Some Policy Implications,” with Joseph P. Hughes, Working Paper 13-31, August 2013. PDF
  • “Who Said Large Banks Don't Experience Scale Economies? Evidence from a Risk-Return-Driven Cost Function,” with Joseph P. Hughes, Working Paper 13-13/R, June 2013. PDF
  • “Large Capital Infusions, Investor Reactions, and the Return and Risk-Performance of Financial Institutions over the Business Cycle,” with Elyas Elyasiani and Michael S. Pagano, Working Paper 13-23, May 2013. PDF
  • “A Primer on Market Discipline and Governance of Financial Institutions for Those in a State of Shocked Disbelief,” with Joseph P. Hughes, Working Paper 12-13, June 2012. PDF Invited for submission to Efficiency and Productivity Growth: Modelling in the Financial Services Industry, edited by Fotios Pasiouras, John Wiley and Sons.
  • "Banks: Is Big Beautiful or Do Good Things Come in Small Packages?" PDF prepared for the Columbia University Conference on Financial Risk and Regulation: Unfinished Business, New York, NY, March 27, 2012.
  • “Who Said Large Banks Don't Experience Scale Economies? Evidence from a Risk-Return-Driven Cost Function,” with Joseph P. Hughes, Working Paper 11-27, July 2011. PDF
  • "Regulatory Reform and the Role of the Fed," PDF prepared for the Princeton Colloquium on Public and International Affairs: The "New Normal?" American Policy Making After the Great Recession. Princeton University, April 16-17, 2010.
  • "Central Bank Institutional Structure and Effective Central Banking: Cross-Country Empirical Evidence," with Iftekhar Hasan, Working Paper 08-5, April 2008. PDF
  • "Efficiency in Banking: Theory, Practice, and Evidence," with Joseph P. Hughes, Working Paper 08-1, January 2008. PDF
  • "Competitive Effects of Basel II on U.S. Bank Credit Card Lending," with William W. Lang and Todd A. Vermilyea, Working Paper 07-9, March 2007. PDF
  • "Optimal Industrial Structure in Banking," Working Paper 08-2, July 2005. PDF
  • "Applying Efficiency Measurement Techniques to Central Banks," Working Paper 03-13, July 2003. PDF
  • "Optimal Financial Contracts for Large Investors: The Role of Lender Liability," with Mitchell Berlin, Working Paper 00-1, February 2000. Supersedes Working Paper 99-8. PDF
  • "Efficiency and Productivity Change in the U.S. Commercial Banking Industry: A Comparison of the 1980s and 1990s," with Allen N. Berger, Working Paper 97-5/R, May 1997, revised November 1997. PDF
  • "Recovering Technologies that Account for Generalized Managerial Preferences: An Application to Non-Risk-Neutral Banks," with Joseph P. Hughes, William Lang, and Choon-Geol Moon, Working Paper 95-8/R, August 1994, revised August 1996.

Research Interests and Work in Progress

  • Productive efficiency in financial institutions
  • Theory of financial intermediation
  • Agency problems in credit markets
  • Credit card pricing
  • Central bank governance
  • Inflation
  • Last update: February 11, 2014