[Job market paper]

with Jin Cao (Norges Bank) and Ragnar Juelsrud (Norges Bank)

Norges Bank Working Paper 6/2021 (Previous title: Covered bonds and bank portfolio rebalancing)

AEA 2022 (Poster), Econometric Society European Winter Meetings 2021, DGF Innsbruck 2021 , Otto-von-Guercke University of Magdeburg Faculty Research Seminar June 2021, NBRE Spring Meeting 2021*, Norges Bank Brown Bag 2019

*presented by co-author

We use the introduction of covered bonds in Norway in 2007 together with administrative and supervisory data at the bank- and loan-level to investigate the effect of asset encumbrance on the composition of bank balance sheets and bank risk. We show that covered bonds - despite being collateralized with mortgages - leads to a shift in bank lending from mortgages to corporate loans. The marginal corporate borrower is young and low-rated, suggesting that overall credit risk increases. At the same time, we find that total balance sheet liquidity increases. Overall, the beneficial effects of increased liquidity on bank risk outweighs any negative effects of increased credit risk, ultimately reducing risk premia on total and unsecured funding. The effects are driven by banks with low initial liquidity and high risk-adjusted returns on firm lending.

[Working Paper]

IWH Discussion Papers No.22/2019* , IWH Best Paper Award 2021 (received January 2022)

AEA 2022 (Poster), Day-ahead workshop University of Zurich 2021, DGF Doctoral Workshop Innsbruck 2021 , WEAI 2021, Norges Bank Brown Bag 2019, EEA Manchester 2019, PHD consortium at the Spanish Finance Forum 2019, WIMFEH Berlin 2019, AFA Atlanta 2019 (Poster)

Unconventional monetary policy can stimulate lending from weak banks to weak firms. Do changes in lending behavior induce spillover effects between firms within agglomerations? By exploiting the first asset purchase program of the ECB, I show that firms linked to banks which benefit from asset purchases invest less and induce negative spillovers on firms operating in the same region and sector. The finding is important for two reasons: First, it provides evidence on how zombie lending can delay economic recovery. Second, it shows the importance to consider spillovers when assessing unconventional monetary policy because spillovers can cover up direct effects.

*Formerly circulated under the title "Win-win or joy and sorrow? Spillover of asset purchases within the real sector"

[Working Paper]

with Manfred Antoni (IAB)

IWH Discussion Papers No.12/2019

ProdTalk No.7 2021, Chicago Financial Institutions Conference*, GdRE Besancon 2019, C.R.E.D.I.T. 2018 (Poster), FINEST Workshop 2018, 7th CompNet Annual Conference 2018

*scheduled presentation by co-author was cancelled due to Covid.

Asset purchase programs (APPs) may allow banks to continue lending to unproductive customers. Using administrative plant and bank data, we test whether APPs impinge on industry dynamics in terms of plant entry and exit. Plants in Germany connected to banks with access to an APP are approximately 20% less likely to exit. In particular, unproductive plants connected to weak banks with APP access are less likely to close. Aggregate entry and exit rates in regional markets with high APP exposures are also lower. Thus, APPs seem to subdue Schumpeterian cleansing mechanisms, which may hamper factor reallocation and aggregate productivity growth.


Complexity and bank risk during the financial crisis, Economics Letters 150: 118-121 (2017).

with Thomas Krause (Danmarks Nationalbank) and Lena Tonzer (Vrije Universiteit Amsterdam , IWH)


We construct a novel dataset to measure banks’ complexity and relate it to banks’ riskiness. The sample covers stock listed Euro area banks from 2007 to 2014. Bank stability is significantly affected by complexity, whereas the direction of the effect differs across complexity measures.