I have been appointed Professor of Financial Economics at the Faculty of Economics and Business at the University of Amsterdam (UvA). Starting from July 2020 I will combine my professorship with my position as a Senior Research Advisor at the Bank of England. You can find the announcement here.
In this paper Stijn Claessens and I exploit our Bank Ownership Database and we show that the presence and entry of a foreign bank has a positive impact on bilateral export and (to a lesser extent) import. We find evidence that indicates that foreign banks facilitate trade by reducing financial frictions for firms that (want to) trade.
In a new working paper: “All you need is cash: Corporate cash holdings and investment after the financial crisis” written jointly with Andi Joseph, Christiane Kneer and Jumana Saleheen we show that having cash at hand allows firms to continue to invest during the crisis while industry rivals without cash have to divest. This gives cash-rich firms an important competitive edge that not only benefits them during the crisis but that gives them an advantage that lasts way beyond the crisis years. See also our blog on the topic.
European domestic banks were more likely to buy bonds issued by the governments when default looked imminent. What persuaded them? See https://www.aeaweb.org/research/moral-suasion-european-debt-crisis
At the fourth ESRB Annual Conference I discussed the link between demographic changes and non-bank activity in the mortgage market. I highlighted the role insurers can play unlocking cash when retirees are asset rich but cash poor. See here my presentation