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 …
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 …
We examine the impact of digital payments on the transmission of monetary policy by leveraging administrative data on Brazil's Pix, a digital payment system. We find that Pix adoption diminished banks' market power, making them more responsive to …
We study credit providers and costs of debt for firms with low ESG performance. First, we find that, while both banks and public bondholders charge low-ESG borrowers a higher interest rate compared to high-ESG borrowers, the premium charged by banks …
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 …