Alejandro Casado

Research Economist

Banco de España

Financial Stability and Macroprudential Policy Department

Biography

I am a Research Economist currently working at the Financial Stability and Macroprudential Policy Department of the Banco de España.

My field of expertise is empirical finance with a special interest in financial intermediation.

Interests

  • Bank specialization
  • Deposit and loan competition
  • Monetary policy
  • Debt contracting
  • Bank supply shocks

Education

  • Ph.D. in Business Economics (2019-2023) Universidad Carlos III de Madrid
  • Research Visiting  (2021-2023) Banco de España
  • MS in Business and Finance (Research Master) (2017-2019) Universidad Carlos III de Madrid
  • BA in Economics (2012-2016) Universidad Carlos III de Madrid
"Nothing in life is quite as important as you think it is while you're thinking about it."
- Daniel Kahneman

Working Papers

June 2023

Local Lending Specialization and Monetary Policy

Alejandro Casado and David Martinez-Miera

We explore how banks’ local lending market specialization shapes their loan supply in response to monetary policy changes. Using data from the U.S. mortgage market, we find that when the Fed funds rate declines, banks increase new mortgage lending growth by more in markets where they are more specialized, i.e. lent more in the past, relative to other markets. This result holds when controlling for local lending opportunities and bank-year level heterogeneity. We also document relevant aggregate county-level and bank-level implications of this channel. After a decrease in the Fed funds rate (i) mortgage markets with more exposure to specialized banks experience a higher increase in aggregate new mortgage supply and house price growth and (ii) banks increase (decrease) their average specialization (diversification) growth. We provide theoretical and empirical evidence in line with heterogeneous lending costs across markets, related to informational asymmetries, being a relevant driver of the results. Our findings suggest that bank’s local specialization is an important determinant for the transmission of monetary policy to the economy and that it is itself affected by monetary policy changes.

Best Doctoral Paper Award at the FMARC Conference, 2023

May 2023

Deposit Market Competition and (Low) Monetary Policy Rates

Alejandro Casado and David Martinez-Miera

We analyze how the level of monetary policy rates affects the relevance of deposit market competition for the transmission of monetary policy. We find that following a monetary policy tightening when interest rates are sufficiently low (high), banks’ branches located in concentrated deposit markets experience an increase (decrease) in deposit quantities relative to branches of the same bank located in competitive markets. We also find how this differential effect translates partially into the lending markets, but do not find a differential effect in the labour market (wages and employment). These results suggest that monetary policy transmission channels may work differently when interest rates are low consistent with the presence of zero lower bound constraints in the deposit market.

October 2022

Firms’ Financial Reporting Quality and Banks’ Shock Transmission

Alejandro Casado, Nadia Lavín, David Martinez-Miera, Antonio Moreta, and Irene Pablos

We highlight the role of firms’ financial reporting quality in the transmission of bank credit supply shocks to the economy. We exploit a large dataset of all corporate loans in Spain over 2009-2019 which allows us to identify firm-year bank credit supply shocks by accounting for time-varying firm heterogeneity in loan demand. We find that after an adverse bank credit supply shock, firms with lower financial reporting quality experience a sharper contraction in bank credit compared to firms with higher financial reporting quality. Further, such firms are unable to fully substitute the additional drop in bank credit with alternative financing sources, resulting in a higher decrease in their investment and asset growth. These results are amplified for financially constrained firms. Our findings suggest that financial reporting quality is related to lower information frictions between firms and capital providers.

Policy Writing

October 2017

Results of PIRLS for Students in Bilingual Studies

Alejandro Casado, María Luengo, and Almudena Sevilla

September 2016

Desajuste en Competencias Entre la Oferta y la Demanda de Trabajo en España

Alejandro Casado and Sergio Puente

Teaching

Average instructor rating: 4.77/5

Fall Term 2021

Bank Management

Instructor. In-person: Teaching Survey: 4.96/5

Diploma: Top 5 teaching assistant award for 2021/2022, certified by the Department Head.

Fall Term 2020

Bank Management

Instructor. On-line (90 students): Teaching Survey: 5/5 and 4.79/5.

Diploma: Top 5 teaching assistant award for 2020/2021, certified by the Department Head.

Fall Term 2019

Bank Management

Instructor. In-person: Teaching Survey: 4.77/5 and 4.48/5.

Diploma: Top 5 teaching assistant award for 2019/2020, certified by the Department Head.

Spring Term 2019

Financial Management

Teaching Assistant. In-person: Teaching Survey: 4.71/5 and 4.67/5.

Diploma: Top 5 teaching assistant award for 2018/2019, certified by the Department Head.

Anonymous Student Testimonials

"One of the best teachers I've had during my academic career. He cares about ensuring that we understand the concepts and applies them to the real world and current events, which makes them very engaging."
Bank Management
Fall Term 2021
"Despite being a very young professor, he greatly stimulates learning. He employs a highly autonomous teaching method, which encourages us to be more engaged in the subject. Furthermore, he's always attentive to address all of our doubts. He will become an excellent instructor."
Bank Management
Fall Term 2021
"Even though he delivers the lecture online, Alejandro has managed to make me not miss any of his classes by making them very engaging. He not only covers theoretical content of the subject, but also refers to everyday things closer to us, in order to help us grasp the entire context."
Bank Management
Fall Term 2020
"This professor gets very involved in the class, has brought in professionals from the banking industry, and explains very well. He's a young professor with a bright future and highly recommended. A perfect 10."
Bank Management
Fall Term 2020
"Alejandro has always made sure that no one is left with doubts after his class, and he has explained quite complex concepts in an interesting and interactive way. He has been approachable, and I have learned a lot from him."
Bank Management
Fall Term 2020
"He is very hardworking and understanding. He prepares the classes well and makes sure we understand the subject matter."
Financial Management
Spring Term 2019
"This professor has been incredible, he has ignited a passion for the subject in me."
Bank Management
Fall Term 2021
"If only all teachers taught with the enthusiasm and dedication that Alejandro does. A 10 as a teacher!"
Bank Management
Fall Term 2021
"One of the best professors I've had in university. Explains everything clearly and has exceptional personal interactions."
Bank Management
Fall Term 2020

Get In Touch!

Email

Address

Banco de España
C. de Alcalá, 48, 28014 Madrid
 

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