A core function of any banking system is the provision of payments. However, a greater number of non-banks are becoming part of the payments landscape. Payments can be made via fiat or crypto currencies, bank credit or deposits, or funds transfers on the books of non-bank payment providers. Most of...
Carbó, Chakravorti, and Rodriguez study the impact of lowering interchange fees on consumer and merchant adoption and usage along with bank revenues during a ten-year period in Spain using bank-level data. Using cutting-edge econometric techniques, they are able to test two-sided market model predictions about payment card pricing policies. They...
In his testimony, Bob Chakravorti elaborated on the following areas: first, the state of the economic literature on the costs and benefits of capital regulation; second, the enormous changes that we have seen post-crisis in the bank capital regulatory landscape and the ensuing changes to the quality and quantity of...
The key questions that Chakravorti asks in this book chapter are: (1) How is the payment system evolving? (2) What are the economic forces driving the adoption of new payment instruments? (3) Would recent developments in the payment system limit the central bank from conducting monetary policy? He argues that...
In this article, Chakravorti and Lubasi conclude that prepaid applications potentially provide a more cost-effective means to transfer funds when: 1) recipients of funds do not have transactions accounts; 2) disbursers of funds do not have access to the recipient’s transactions accounts, or 3) the disbursers of funds need to...