WASHINGTON - Banks hoping to reap savings by consolidating decision making at the home office may be in for a nasty surprise, according to an economist at the Federal Reserve Bank of Chicago.

William C. Hunter, the Chicago Fed's director of research, wrote in the September/October issue of Economic Perspectives that centralized decision increases costs as much as 9.6%.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.