Banco de España
Financial Stability and Macroprudential Policy Department
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.
- Bank specialization
- Deposit and loan competition
- Monetary policy
- Debt contracting
- Bank supply shocks
- 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
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
When the Deposits Rate Channel of Monetary Policy Breaks Down
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.
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.
Results of PIRLS for Students in Bilingual Studies
Alejandro Casado, María Luengo, and Almudena Sevilla
Desajuste en Competencias Entre la Oferta y la Demanda de Trabajo en España
Alejandro Casado and Sergio Puente
Average instructor rating: 4.77/5
Fall Term 2021
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
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
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
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.