Photo of Diana Hancock

Diana Hancock

Education

  • Ph.D., Economics, University of British Columbia, 1983
  • B.S., Mathematics and Economics, University of Santa Clara, 1977
Current Research Topics
  • Financial Stability, Monetary Policy, Bank Capital
  • Transmission Mechanisms, Mortgage Markets
  • Senior Associate Director

    Board of Governors of the Federal Reserve System

    2015 - present
  • Associate Director

    Board of Governors of the Federal Reserve System

    2014 - 2015
  • Deputy Associate Director

    Board of Governors of the Federal Reserve System

    2009 - 2014
  • Assistant Director

    Board of Governors of the Federal Reserve System

    2004 - 2009
  • Chief, Monetary and Financial Studies

    Board of Governors of the Federal Reserve System

    1999 - 2004
  • Senior Economist

    Board of Governors of the Federal Reserve System

    1996 - 1999
  • Economist

    Board of Governors of the Federal Reserve System

    1991 - 1996
  • Visiting Assistant Professor of Economics

    Stanford University

    1988 - 1991
  • Visiting Scholar

    Federal Reserve Bank of Kansas City

    1986 - 1987
  • Assistant Professor of Finance

    University of Santa Clara

    1984 - 1991
  • Are Incurred Loss Standards Countercyclical? A Case Study Using U.S. Bank Holding Company Data
    Fang Du, Diana Hancock, and Alexander H. von Hafften
    Journal of Risk and Financial Management (2022)
    https://doi.org/10.3390/jrfm15030111
  • Climate Change and Financial Stability
    Celso Brunetti, Benjamin Dennis, Dylan Gates, Diana Hancock, David Ignell, Elizabeth K. Kiser, Gurubala Kotta, Anna Kovner, Richard J. Rosen, and Nicholas K. Tabor
    FEDS Notes (2021)
    https://doi.org/10.17016/2380-7172.2893
  • The Costs and Benefits of Bank Capital—A Review of the Literature
    Martin Birn, Olivier de Bandt, Simon Firestone, Matías Gutiérrez Girault, Diana Hancock, Tord Krogh, Hitoshi Mio, Donald P. Morgan, Ajay Palvia, Valerio Scalone, Michael Straughan, Arzu Uluc, Alexander H. von Hafften, and Missaka Warusawitharana
    Journal of Risk and Financial Management (2020)
    https://doi.org/10.3390/jrfm13040074
  • ’Tailoring’ Financial Regulations
    Diana Hancock
    Policy Research Meeting on Financial Markets and Institutions: Proceedings of the Conference in Memory of Andrea Generale, Rome (2019)
  • Cost of Funds Indexed Mortgage Contracts With Government-Backed Catastrophic Insurance (COFI-Cats): A Realistic Alternative to the 30-Year Fixed-Rate Mortgage?
    Diana Hancock and Wayne Passmore
    Journal of Economics & Business (2016)
    https://doi.org/10.1016/j.jeconbus.2016.02.004
  • Macroprudential Mortgage-Backed Securitization: Can it Work?
    Diana Hancock and Wayne Passmore
    Principles of Housing Finance Reform (2016)
  • How Does the Federal Reserve's Large-Scale Asset Purchases (LSAPs) Influence Mortgage-Backed Securities (MBS) Yields and U.S. Mortgage Rates?
    Diana Hancock and Wayne Passmore
    Real Estate Economics (2015)
    https://doi.org/10.1111/1540-6229.12109
  • Traditional Banks, Shadow Banks, and Financial Stability
    D. Hancock and Wayne Passmore
    Shadow Banking Within and Across National Borders (2015)
  • How the Federal Reserve's Large-Scale Asset Purchases (LSAPs) Influence Mortgage-Backed Securities (MBS) Yields and U.S. Mortgage Rates
    Diana Hancock and Wayne Passmore
    Finance and Economics Discussion Series (2014)
    https://doi.org/10.17016/FEDS.2014.012
  • The Federal Reserve's Portfolio and its Effects on Mortgage Markets
    Diana Hancock and Wayne Passmore
    Finance and Economics Discussion Series (2012)
    https://doi.org/10.17016/FEDS.2012.22
  • Federal Home Loan Bank Advances and Commercial Bank Portfolio Composition
    W. S. Frame, Diana Hancock, and Wayne Passmore
    Journal of Money, Credit and Banking (2012)
    https://doi.org/10.1111/j.1538-4616.2012.00505.x
    See also » FRB Working Paper (2007)
  • Did the Federal Reserve's MBS purchase program lower mortgage rates?
    Diana Hancock and Wayne Passmore
    Journal of Monetary Economics (2011)
    https://doi.org/10.1016/j.jmoneco.2011.05.002
    See also » FRB Working Paper (2011)
  • Catastrophic Mortgage Insurance and the Reform of Fannie Mae and Freddie Mac
    Diana Hancock and Wayne Passmore
    Future of Housing Finance: Restructuring the U.S. Residential Mortgage Market (2011)
  • The Future of Fannie Mae and Freddie Mac
    Diana Hancock and Wayne Passmore
    Journal of Applied Finance (2011)
  • An Analysis of Government Guarantees and the Functioning of Asset-Backed Securities Markets
    Diana Hancock and Wayne Passmore
    Finance and Economics Discussion Series (2010)
    https://doi.org/10.17016/FEDS.2010.46
  • The Bank Lending Channel of Monetary Policy and its Effect on Mortgage Lending
    Lamont K. Black, Diana Hancock, and Wayne Passmore
    Finance and Economics Discussion Series (2010)
    https://doi.org/10.17016/FEDS.2010.39
  • Three Initiatives Enhancing the Mortgage Market and Promoting Financial Stability
    Diana Hancock and S. Wayne Passmore
    B.E. Journal of Economic Analysis & Policy (2009)
    https://doi.org/10.2202/1935-1682.2226
  • Bank Core Deposits and the Mitigation of Monetary Policy
    Lamont Black, Diana Hancock, and Wayne Passmore
    Finance and Economics Discussion Series (2007)
    https://doi.org/10.17016/FEDS.2007.65
  • A Summary of Federal Home Loan Bank Advances and Commercial Bank Portfolio Composition
    W. Scott Frame, Diana Hancock, and S. Wayne Passmore
    Proceedings of a Conference on Bank Structure and Competition (2007)
  • Federal Home Loan Bank Advances and Commercial Bank Portfolio Composition
    W. Scott Frame, Diana Hancock, and Wayne Passmore
    Working Paper (Federal Reserve Bank of Atlanta) (2007)
    See also » FRB Working Paper (2007)
  • Federal Home Loan Bank Advances and Commercial Bank Portfolio Composition
    W. Scott Frame, Diana Hancock, and S. Wayne Passmore
    Proceedings of a Conference on Bank Structure and Competition (2007)
    See also » FRB Working Paper (2007)
  • Does Trading Frequency Affect Subordinated Debt Spreads?
    Christopher Bianchi, Diana Hancock, and Laura Kawano
    Finance and Economics Discussion Series (2005)
    https://doi.org/10.17016/FEDS.2005.08
  • An Analysis of the Potential Competitive Impacts of Basel II Capital Standards on U.S. Mortgage Rates and Mortgage Securitization
    S. Wayne Passmore, Diana Hancock, Andreas Lehnert, and Shane M. Sherlund
    Basel II White Paper (2005)
  • What Does the Yield on Subordinated Bank Debt Measure?
    Urs Birchler and Diana Hancock
    SNB Working Papers (2004)
    See also » FRB Working Paper (2004)
  • A Reconsideration of the Risk Sensitivity of U.S. Banking Organization Subordinated Debt Spreads: A Sample Selection Approach
    Daniel M. Covitz, Diana Hancock, and Myron L. Kwast
    Economic Policy Review (2004)
  • Estimates of Scale and Cost Efficiency for Federal Reserve Currency Operations
    James Bohn, Diana Hancock, and Paul Bauer
    Economic Review (Federal Reserve Bank of Cleveland) (2001)
  • Using Subordinated Debt to Monitor Bank Holding Companies: Is It Feasible?
    Diana Hancock and Myron L. Kwast
    Journal of Financial Services Research (2001)
    https://doi.org/10.1023/A:1012460007340
    See also » FRB Working Paper (2001)
  • Why Are Bank Profits So Persistent? The Roles of Product Market Competition, Informational Opacity, and Regional/Macroeconomic Shocks
    Allen N. Berger, Seth D. Bonime, Daniel M. Covitz, and Diana Hancock
    Journal of Banking & Finance (2000)
    https://doi.org/10.1016/S0378-4266(99)00124-7
    See also » FRB Working Paper (1999)
  • Review of: Performance of financial institutions: Efficiency, innovation, regulation
    Diana Hancock
    Journal of Economic Literature (2000)
    https://doi.org/10.1257/jel.38.4.936
  • Cost Reductions in Electronic Payments: The Roles of Consolidation, Economies of Scale, and Technical Change
    Diana Hancock, David B. Humphrey, and James A. Wilcox
    Journal of Banking & Finance (1999)
    https://doi.org/10.1016/S0378-4266(98)00108-3
  • The 'Credit Crunch' and the Availability of Credit to Small Business
    Diana Hancock and James A. Wilcox
    Journal of Banking & Finance (1998)
    https://doi.org/10.1016/S0378-4266(98)00040-5
  • Payment Transactions, Instruments, and Systems: A Survey
    Diana Hancock and David B. Humphrey
    Journal of Banking & Finance (1997)
    https://doi.org/10.1016/S0378-4266(97)00046-0
  • Bank Capital, Nonbank Finance, and Real Estate Activity
    Diana Hancock and James A. Wilcox
    Journal of Housing Research (1997)
  • Intraday Management of Bank Reserves: The Effects of Caps and Fees on Daylight Overdrafts
    Diana Hancock and James A. Wilcox
    Journal of Money, Credit and Banking (1996)
    https://doi.org/10.2307/2077926
  • A Framework for Analyzing Efficiency, Risks, Costs, and Innovations in the Payments System
    Allen N. Berger, Diana Hancock, and Jeffrey C. Marquardt
    Journal of Money, Credit and Banking (1996)
    https://doi.org/10.2307/2077917
  • Scale Economies and Technological Change in Federal Reserve ACH Payment Processing
    Paul W. Bauer and Diana Hancock
    Economic Review (Federal Reserve Bank of Cleveland) (1995)
  • Bank Capital Shocks: Dynamic Effects on Securities, Loans, and Capital
    Diana Hancock, Andrew J. Laing, and James A. Wilcox
    Journal of Banking & Finance (1995)
    https://doi.org/10.1016/0378-4266(94)00147-U
  • Are Basle Capital Standards To Blame For The Credit Crunch
    Diana Hancock
    Journal of Finance (1994)
    https://doi.org/10.1111/j.1540-6261.1994.tb00088.x
  • Bank Capital and the Credit Crunch: The Roles of Risk-Weighted and Unweighted Capital Regulations
    Diana Hancock and James A. Wilcox
    Real Estate Economics (1994)
    https://doi.org/10.1111/1540-6229.00626
  • Bank Capital, Loan Delinquencies, and Real Estate Lending
    Diana Hancock and James A. Wilcox
    Journal of Housing Economics (1994)
    https://doi.org/10.1006/jhec.1994.1004
  • Measuring Efficiency In Banking Using Profit-Functions
    Allen N. Berger and Diana Hancock
    Journal of Finance (1993)
    https://doi.org/10.1111/j.1540-6261.1993.tb04030.x
  • Bank Efficiency Derived from the Profit Function
    Allen N. Berger, Diana Hancock, and David B. Humphrey
    Journal of Banking & Finance (1993)
    https://doi.org/10.1016/0378-4266(93)90035-C
  • The Efficiency of the Federal Reserve in Providing Check Processing Services
    Paul W. Bauer and Diana Hancock
    Journal of Banking & Finance (1993)
    https://doi.org/10.1016/0378-4266(93)90033-A
  • Has there been a 'Capital Crunch' in Banking? the Effects on Bank Lending of Real Estate Market Conditions and Bank Capital Shortfalls
    Diana Hancock and James A. Wilcox
    Journal of Housing Economics (1993)
    https://doi.org/10.1006/jhec.1993.1003
  • Measurement and Efficiency Issues in Commercial Banking: Comment
    Diana Hancock
    Output measurement in the service sectors (1992)
  • Bank Efficiency Derived from a Profit Function
    Allen N. Berger, Diana Hancock, and David B. Humphrey
    Finance and Economics Discussion Series (1992)
  • Recent Developments Affecting the Profitability and Practices of Commercial Banks
    Allan D. Brunner, Diana Hancock, and Mary M. McLaughlin
    Federal Reserve Bulletin (1992)
  • A Theory of Production for the Financial Firm
    Diana Hancock
    Innovations in financial markets and institutions (1991)
    https://doi.org/10.1007/978-94-011-3870-3
  • Bank Profitability, Deregulation, and the Production of Financial Services
    Diana Hancock
    Research working paper (Federal Reserve Bank of Kansas City) (1989)
  • Aggregation of Monetary Goods: A Production Model
    Diana Hancock
    New approaches to monetary economics (1987)
    https://doi.org/10.1017/CBO9780511759628.010
  • Testing Price Taking in Loan and Deposit Markets by Financial Firms
    Diana Hancock
    Financial Review (1986)
    https://doi.org/10.1111/j.1540-6288.1986.tb01121.x
  • A Model of the Financial Firm with Imperfect Asset and Deposit Elasticities
    Diana Hancock
    Journal of Banking & Finance (1986)
    https://doi.org/10.1016/0378-4266(86)90019-1
  • Bank Profitability, Interest Rates, and Monetary Policy
    Diana Hancock
    Journal of Money, Credit and Banking (1985)
    https://doi.org/10.2307/1992333
  • The Financial Firm: Production with Monetary and Nonmonetary Goods
    Diana Hancock
    Journal of Political Economy (1985)
    https://doi.org/10.1086/261339
  • conference

    May 2006

    Proceedings, The Art of the Loan in the 21st Century: Producing, Pricing, and Regulating Credit, The 42nd Conference on Bank Structure Competition

    "Federal Reserve Research on Government-Sponsored Enterprises," with Wayne Passmore, Gillian Burgess, Andreas Lehnert, Shane M. Sherlund

  • conference

    May 2005

    Proceedings, Innovations in Real Estate Markets: Risks, Rewards, and the Role of Regulation, The 41st Conference on Bank Structure Competition

    "Basel II Competitive Implications," with Wayne Passmore

  • conference

    May 1998

    Proceedings, Payment Systems in the Global Economy: Risks and Opportunities, The 34th Annual Conference on Bank Structure and Competition

    "The Extraordinary Persistence of Profits in the U.S. Banking Industry: A Breakdown of the Competitive Paradigm?" with Allen N. Berger and Dan Covitz

  • conference

    January 1997

    Allied Social Sciences Association Meetings

    "Demand for Fedwire Payment Services: The Effect of Macroeconomic Shocks and Banking Consolidation," with James A. Wilcox

  • conference

    May 1996

    Proceedings, Rethinking Bank Regulation: What Should Regulators Do? The 32nd Annual Conference on Bank Structure and Competition

    "Measuring the Efficiency of Financial Institutions: The Importance of Choosing a Frontier."

  • seminar

    April 1995

    Joint Washington University - Federal Reserve Bank of St. Louis Seminar Series

    "Superlative Bank Credit Indexes and the Lending Channel," with Dennis Fixler

  • conference

    May 1993

    Proceedings, FDICIA: An Appraisal, The 29th Annual Conference on Bank Structure and Competition

    "Domestic and International Capital Standards and Bank Assets," with James A. Wilcox

  • conference

    May 1992

    Proceedings, Credit Markets in Transition, The 28th Annual Conference on Bank Structure and Competition

    "The Effects on Bank Assets of Business Conditions and Capital Shortfalls," with James A. Wilcox

Awards
  • 1986

    Eastern Finance Association

    Best Paper Award

  • 1997

    Reserve Bank Operations and Payment Systems

    Special Achievement Award

Conference Organization
  • 2004-2011 | ASSA Meetings

    Federal Reserve System Day Ahead Conferences

    Organizing Committee

Editor
  • Editorial Board, AESTIMATIO, The IEB Journal of Finance, 2010 - present
  • Board of Editors, Atlantic Economic Journal, 1998 - present
  • Associate Editor, Journal of Banking and Finance, 1994-1999
Referee
  • Journal of Monetary Economics
  • American Economic Review
  • Journal of Political Economy
  • Journal of Money, Credit, and Banking
Professional Affiliation
  • President, International Banking, Economics and Finance Association, 2011
  • Program Chair, International Banking, Economics and Finance Association, 2010
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Last Update: December 1, 2023