Job Description
The selected intern will work on a project that analyzes the effects of anti-money-laundering (AML) laws and regulations in curbing related risks in the consumer markets, focusing on both bank risk and credit exposure and consumer behavior and welfare.
Each year, a substantial percentage of the US and global GDP is impacted by money laundering, posing large regulatory, legal, and reputational risks, and significantly increasing the banking system’s risks. The Bank Secrecy Act / Anti-Money Laundering (BSA/AML) in the US are examples of laws and regulations intended to protect banks from such money laundering, financing of terrorism, and other related criminal activity risks.
This project studies whether BSA/AML regulations may help reduce the banks’ exposure to AML risks in consumer markets using a variety of loan-level consumer data as well as bank-level data over 1990-2024 combined with BSA/AML regulatory shocks and other measurements. Specifically, the intern will use several credit bureau and loan-level data for consumer credit products to investigate effects of BSA/AML regulations on lender risk exposure as well as consumers’ credit and other outcomes including debt, delinquency, and bankruptcy, among others. The analysis will also investigate heterogeneous effects across different groups of consumers, markets, and lenders.
What You Have:
Required Skills:
Preferred Competencies:
Additional Information:
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Board of the Governors of the Federal Reserve System is the main governing body of the Federal Reserve System. It supports decisions in the areas of monetary policy, banking information and regulation, payment systems, economic research and data, consumer information, community development, reporting forms, and more. The board consists of seven members appointed by the President of the United States and confirmed by the U.S. Senate. The Board supervises the activities of the Reserve Banks, approves the Reserve Banks' annual budgets, appoints three of the nine directors of each Reserve Bank, approves the candidate for Bank president recommended by the directors of each Reserve Bank, and approves major Reserve Bank expenditures, such as those for the construction of buildings and the salaries of Reserve Bank presidents. The board also plays a major role in banking supervision, which entails the examination of depository institutions for safety and soundness and for compliance with laws and regulations. The Board's supervisory responsibilities extend to all bank holding companies, state-chartered banks that are members of the Federal Reserve System, and Edge Act and agreement corporations through which U.S. banks conduct operations abroad. In addition, the Board also oversees the activities of the U.S. branches of foreign banks. While the Board determines bank supervision policy, it delegates the task of conducting the examinations to the 12 Reserve Banks. The Board also publishes a wealth of statistics and other information about the Federal Reserve and about the U.S. economy. In whole, the board employs about 1850 employees.
