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Instant Payment Systems and Competition for Deposits

I study how financial technology reshapes competition among banks. I exploit quasi-random variation in exposure to the introduction of Brazil's Pix, an instant payment system, and show that instant payments increase deposit competition. Small bank …

Monetary Policy and Financial Stability

How should monetary policy respond to evolving financial conditions? To answer this question we develop and Bayesian estimate a dynamic macro model with a detailed financial sector and long-term defaultable nominal debt contracts to quantify how …

Local Power, Global Reach: The Influence of Deposit Market Power on International Banking

We provide evidence that the market power that global banks hold over domestic US deposits drives their operations abroad. After a contractionary monetary shock, global banks with high local deposit market power increase bank deposit spreads and …

Where Do Brown Companies Borrow From?

We study cost and sources of debt for companies with poor ESG performance. We find that, while both loan and bond financing are costlier for borrowers with poor ESG performance, "brown" firms face a lower extra premium for borrowing from banks than …

Digital Payments and Monetary Policy Transmission (Draft coming soon!)

We examine the impact of digital payments on the transmission of monetary policy. Leveraging administrative data on Pix, a digital payment system introduced by the Central Bank of Brazil, we find that Pix adoption has diminished banks' market power, …

Surfing the Green Wave: What’s in a "Green" Name Change?

Banks’ Physical Footprint and Financial Technology Adoption

Are US Monetary Surprises Surprising? Evidence from Global Markets

We show that FOMC announcement surprises are predicted by preceding ECB monetary policy announcement surprises. Specifically, a 1 p.p. ECB monetary policy surprise predicts a subsequent 0.25 p.p. FOMC surprise. Increases in stock (bond) prices around …

Blockchain and Banking Efficiency: Global Evidence from Ripple Network Adoption

Conflicting Fiduciary Duties and Fire Sales of VC-backed Start-ups