Research

Bank and nonbank financial intermediation, monetary policy transmission, financial stability, and asset management

Working papers

When Nonbanks Dampen and When They Amplify: A Yield-Curve View of the Nonbank Lending Channel

with Peter Bednarek, Steven Ongena, and Natalja von Westernhagen

Bundesbank Discussion Paper
Abstract

We show that the nonbank lending channel is yield-curve dependent. Using German credit register data and within-firm identification, we decompose high-frequency monetary policy surprises into orthogonal short-end, medium-end, and long-end components. Nonbanks expand relative to banks after short-end surprises but contract after medium- and long-end surprises. Financial service institutions drive this sign reversal through a bank credit reallocation channel, while insurers move in the opposite direction, expanding after medium- and long-end surprises as duration-driven solvency gains support credit provision. The nonbank response therefore depends on both the yield-curve segment affected by monetary policy and the composition of the nonbank sector.

Presentations

AFA Annual Meeting (Washington, poster) · CEBRA Annual Meeting (Copenhagen) · IFABS (London) · 15th MoFiR Workshop on Banking (Varese) · 10th Emerging Scholars in Banking and Finance Conference (London) · 19th RGS Doctoral Conference (Bochum) · ChaMP Special Workstream 1 NBFI Workshop (Frankfurt) · Deutsche Bundesbank Research Seminar Series (Online) · FMA Annual Meeting (Tampa)*

* presented by co-author

Awards

Best Paper Award Semifinalist, FMA Annual Meeting (2026).

Coverage

ECB Occasional Paper No. 391, Monetary policy transmission and non-bank financial intermediation (ChaMP Research Network, 2026) · Deutsche Bundesbank Monthly Report, April 2026.

Work in progress

Banks, Nonbanks, and Geopolitical Shocks: Evidence from the Russia–Ukraine War

with Daniel te Kaat, Michaela Kesina, and Natalja von Westernhagen

In progress
Abstract

Using the Russia–Ukraine war as a natural experiment, this project examines how geopolitical stress travels through bank-nonbank networks and quantifies the role that nonbanks play in stabilizing or destabilizing credit supply to firms.

Grant

Supported by a research grant from the Frankfurt Institute for Risk Management and Regulation (FIRM).

Global Bond Funds and Safe-Asset Demand

with Carlos Cañón Salazar and Georgia Bush

In progress