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Diana Hancock

Associate Director

Program Direction Section

Research and Statistics

202-452-3019
diana.hancock@frb.gov
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
    • Associate Director

      Board of Governors of the Federal Reserve System

    • 2014 - present
    • 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
  • Hancock, Diana, and Wayne Passmore (2014). "How the Federal Reserve's Large-Scale Asset Purchases (LSAPs) Influence Mortgage-Backed Securities (MBS) Yields and U.S. Mortgage Rates," Finance and Economics Discussion Series 2014-12. Board of Governors of the Federal Reserve System (U.S.).
  • Frame, W. S., Diana Hancock, and Wayne Passmore (2012). "Federal Home Loan Bank Advances and Commercial Bank Portfolio Composition," Journal of Money, Credit, and Banking, vol. 44, no. 4, pp. 661-684.
  • Hancock, Diana, and Wayne Passmore (2012). "The Federal Reserve's Portfolio and its Effects on Mortgage Markets," Finance and Economics Discussion Series 2012-22. Board of Governors of the Federal Reserve System (U.S.).
  • Hancock, Diana, and Wayne Passmore (2011). "Catastrophic Mortgage Insurance and the Reform of Fannie Mae and Freddie Mac," in Baily, Martin N. ed., The Future of Housing Finance: Restructuring the U.S. Residential Mortgage Market. Washington, DC: Brookings Institution Press, pp. 111-145.
  • Hancock, Diana, and Wayne Passmore (2011). "Did the Federal Reserve's MBS Purchase Program Lower Mortgage Rates?" Journal of Monetary Economics, vol. 58, no. 5, pp. 498-514.
  • Hancock, Diana, and Wayne Passmore (2011). "The Future of Fannie Mae and Freddie Mac," Journal of Applied Finance, vol. 21, no. 1, pp. 145-148.
  • Hancock, Diana, and S. Wayne Passmore (2009). "Three Initiatives Enhancing the Mortgage Market and Promoting Financial Stability," The B.E. Journal of Economic Analysis & Policy, Vol. 9, no. 3.
  • Passmore, S. Wayne, Diana Hancock, Andreas Lehnert, and Shane M. Sherlund (2005). "An Analylsis of the Potential Competitive Impacts of Basel II Capital Standards on U.S. Mortgage Rates and Mortgage Securitization," in Basel II White Paper. Washington, D.C.: Board of Governors of the Federal Reserve System.
  • Covitz, Daniel M., Diana Hancock, and Myron L. Kwast (2004). "A Reconsideration of the Risk Sensitivity of U.S. Banking Organization Subordinated Debt Spreads: A Sample Selection Approach," Federal Reserve Bank of New York Economic Policy Review, vol. 10, no. 2, pp. 73-92.
  • Hancock, Diana, and Myron L. Kwast (2001). "Using Subordinated Debt to Monitor Bank Holding Companies: Is it Feasible?" Journal of Financial Services Research, vol. 20, no. 2-3, pp. 147-187.
  • Bohn, James, Diana Hancock, and Paul Bauer (2001). "Estimates of Scale and Cost Efficiency for Federal Reserve Currency Operations," Federal Reserve Bank of Cleveland Economic Review, vol. 37, no. 4, pp. 2-26.
  • Berger, Allen N., Seth D. Bonime, Daniel M. Covitz, and Diana Hancock (2000). "Why are Bank Profits so Persistent? the Roles of Product Market Competition, Informational Opacity, and Regional/Macroeconomic Shocks," Journal of Banking and Finance, vol. 24, no. 7, pp. 1203-1235.
  • Hancock, Diana (2000). "Review of: Performance of Financial Institutions: Efficiency, Innovation, Regulation," Journal of Economic Literature, vol. 38, no. 4, pp. 957-958.
  • Hancock, Diana, David B. Humphrey, and James A. Wilcox (1999). "Cost Reductions in Electronic Payments: The Roles of Consolidation, Economies of Scale, and Technical Change," Journal of Banking and Finance, vol. 23, no. 2-4, pp. 391-421.
  • Hancock, Diana, and James A. Wilcox (1998). "The "Credit Crunch" and the Availability of Credit to Small Business," Journal of Banking and Finance, vol. 22, no. 6-8, pp. 983-1014.
  • Hancock, Diana, and David B. Humphrey (1997). "Payment Transactions, Instruments, and Systems: A Survey," Journal of Banking and Finance, vol. 21, no. 11-12, pp. 1573-1624.
  • Hancock, Diana, and James A. Wilcox (1997). "Bank Capital, Nonbank Finance, and Real Estate Activity," Journal of Housing Research, vol. 8, no. 1, pp. 75-105.
  • Berger, Allen N., Diana Hancock, and Jeffrey C. Marquardt (1996). "A Framework for Analyzing Efficiency, Risks, Costs, and Innovations in the Payments System," Journal of Money, Credit, and Banking, vol. 28, no. 4, pp. 696-732.
  • Hancock, Diana, and James A. Wilcox (1996). "Intraday Management of Bank Reserves: The Effects of Caps and Fees on Daylight Overdrafts," Journal of Money, Credit, and Banking, vol. 28, no. 4, pp. 870-908.
  • Hancock, Diana, Andrew J. Laing, and James A. Wilcox (1995). "Bank Capital Shocks: Dynamic Effects on Securities, Loans, and Capital," Journal of Banking and Finance, vol. 19, no. 3-4, pp. 661-677.
  • Bauer, Paul W., and Diana Hancock (1995). "Scale Economies and Technological Change in Federal Reserve ACH Payment Processing," Federal Reserve Bank of Cleveland Economic Review, vol. 31, no. 3, pp. 14-29.
  • Hancock, Diana, and James A. Wilcox (1994). "Bank Capital, Loan Delinquencies, and Real Estate Lending," Journal of Housing Economics, vol. 3, no. 2, pp. 121-146.
  • Hancock, Diana, and James A. Wilcox (1994). "Bank Capital and the Credit Crunch: The Roles of Risk-Weighted and Unweighted Capital Regulations," American Real Estate and Urban Economics Association Journal, vol. 22, no. 1, pp. 59-94.
  • Hancock, Diana, and James A. Wilcox (1993). "Has there been a "Capital Crunch" in Banking? the Effects on Bank Lending of Real Estate Market Conditions and Bank Capital Shortfalls," Journal of Housing Economics, vol. 3, no. 1, pp. 31-50.
  • Bauer, Paul W., and Diana Hancock (1993). "The Efficiency of the Federal Reserve in Providing Check Processing Services," Journal of Banking and Finance, vol. 17, no. 2-3, pp. 287-311.
  • Berger, Allen N., Diana Hancock, and David B. Humphrey (1993). "Bank Efficiency Derived from the Profit Function," Journal of Banking and Finance, vol. 17, no. 2-3, pp. 317-347.
  • Hancock, Diana (1992). "Measurement and Efficiency Issues in Commercial Banking: Comment," in Griliches, ,Zvi ed., Output Measurement in the Service Sectors. Chicago and London: University of Chicago Press, pp. 296-300.
  • Brunner, Allan D., Diana Hancock, and Mary M. McLaughlin (1992). "Recent Developments Affecting the Profitability and Practices of Commercial Banks," Federal Reserve Bulletin, vol. 78, no. 7, pp. 459-483.
  • Hancock, Diana : (1991). "A Theory of Production for the Financial Firm," in Innovations in Financial Markets and Institutions Series. Boston; Dordrecht and London: Kluwer Academic.
  • Hancock, Diana (1987). "Aggregation of Monetary Goods: A Production Model," in Barnett, William,A., Kenneth Singleton J. eds., New Approaches to Monetary Economics: Proceedings of the Second International Symposium in Economic Theory and Econometrics. Cambridge; New York and Melbourne: Cambridge University Press, pp. 200-218.
  • Hancock, Diana (1986). "A Model of the Financial Firm with Imperfect Asset and Deposit Elasticities," Journal of Banking and Finance, vol. 10, no. 1, pp. 37-54.
  • Hancock, Diana (1986). "Testing Price Taking in Loan and Deposit Markets by Financial Firms," Financial Review, vol. 21, no. 2, pp. 239-257.
  • Hancock, Diana (1985). "Bank Profitability, Interest Rates, and Monetary Policy," Journal of Money, Credit, and Banking, vol. 17, no. 2, pp. 189-202.
  • Hancock, Diana (1985). "The Financial Firm: Production with Monetary and Nonmonetary Goods," Journal of Political Economy, vol. 93, no. 5, pp. 859-880.
  • Hancock, Diana, and Wayne Passmore (2011). "Did the Federal Reserve's MBS Purchase Program Lower Mortgage Rates?" Finance and Economics Discussion Series 2011-01. Board of Governors of the Federal Reserve System (U.S.).
  • Black, Lamont K., Diana Hancock, and Wayne Passmore (2010). "The Bank Lending Channel of Monetary Policy and its Effect on Mortgage Lending," Finance and Economics Discussion Series 2010-39. Board of Governors of the Federal Reserve System (U.S.).
  • Hancock, Diana, and Wayne Passmore (2010). "An Analysis of Government Guarantees and the Functioning of Asset-Backed Securities Markets," Finance and Economics Discussion Series 2010-46. Board of Governors of the Federal Reserve System (U.S.).
  • Black, Lamont, Diana Hancock, and Wayne Passmore (2007). "Bank Core Deposits and the Mitigation of Monetary Policy," Finance and Economics Discussion Series 2007-65. Board of Governors of the Federal Reserve System (U.S.).
  • Frame, W. Scott, Diana Hancock, and Wayne Passmore (2007). "Federal Home Loan Bank Advances and Commercial Bank Portfolio Composition," Finance and Economics Discussion Series 2007-31. Board of Governors of the Federal Reserve System (U.S.).
  • Frame, W. Scott, Diana Hancock, and Wayne Passmore (2007). "Federal Home Loan Bank Advances and Commercial Bank Portfolio Composition," Working Paper 2007-17. Federal Reserve Bank of Atlanta.
  • Hancock, Diana, Andreas Lehnert, Wayne Passmore, and Shane M. Sherlund (2006). "The Competitive Effects of Risk-Based Bank Capital Regulation: An Example from U.S. Mortgage Markets," Finance and Economics Discussion Series 2006-46. Board of Governors of the Federal Reserve System (U.S.).
  • Bianchi, Christopher, Diana Hancock, and Laura Kawano (2005). "Does Trading Frequency Affect Subordinated Debt Spreads?" Finance and Economics Discussion Series 2005-08. Board of Governors of the Federal Reserve System (U.S.).
  • Bianchi, Christopher, Diana Hancock, and Laura Kawano (2005). "Does Trading Frequency Affect Subordinated Debt Spreads?" Finance and Economics Discussion Series 2005-08. Board of Governors of the Federal Reserve System (U.S.).
  • Birchler, Urs, and Diana Hancock (2004). "What does the Yield on Subordinated Bank Debt Measure?" Working Papers 2004-2. Swiss National Bank.
  • Birchler, Urs W., and Diana Hancock (2004). "What does the Yield on Subordinated Bank Debt Measure?" Finance and Economics Discussion Series 2004-19. Board of Governors of the Federal Reserve System (U.S.).
  • Covitz, Daniel M., Diana Hancock, and Myron L. Kwast (2004). "Market Discipline in Banking Reconsidered: The Roles of Funding Manager Decisions and Deposit Insurance Reform," Finance and Economics Discussion Series 2004-53. Board of Governors of the Federal Reserve System (U.S.).
  • Covitz, Daniel M., Diana Hancock, and Myron L. Kwast (2002). "Market Discipline in Banking Reconsidered: The Roles of Deposit Insurance Reform, Funding Manager Decisions and Bond Market Liquidity," Finance and Economics Discussion Series 2002-46. Board of Governors of the Federal Reserve System (U.S.).
  • Hancock, Diana, and Myron L. Kwast (2001). "Using Subordinated Debt to Monitor Bank Holding Companies: Is it Feasible?" Finance and Economics Discussion Series 2001-22. Board of Governors of the Federal Reserve System (U.S.).
  • Berger, Allen N., Seth D. Bonime, Daniel M. Covitz, and Diana Hancock (1999). "Why are Bank Profits so Persistent: The Roles of Product Market Competition, Informational Opacity, and regional/macroeconomic Shocks," Finance and Economics Discussion Series 1999-28. Board of Governors of the Federal Reserve System (U.S.).
  • Berger, Allen N., Diana Hancock, and David B. Humphrey (1992). "Bank Efficiency Derived from a Profit Function," Finance and Economics Discussion Series 211. Board of Governors of the Federal Reserve System (U.S.).
  • Hancock, Diana (1989). "Bank Profitability, Deregulation, and the Production of Financial Services," Research Working Paper 89-16. Reserve Bank of Kansas City.
  • 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 8, 2014