Philipp Schnabl

🚨 Friendly reminder 🚨 The submission deadline for the NY Fed/NYU Financial Intermediation conference is today. Don't miss out – submit your papers now!

Exciting news! Our book "SVB and Beyond: The Banking Stress of 2023" is now available! 📖 Co-authored with my amazing colleagues at @NYUStern, it's an exploration of the recent banking turmoil's events, causes, and proposed solutions. stern.nyu.edu/experience-ste…

***The 2023 Macro Finance Society Virtual Summer School,*** Aug 7-11 With Jesus Fernandez-Villaverde (Penn), @CarolinPflueger (Chicago), @rkoijen (Chicago), @motoyogo (Princeton), @StefanoGiglioEc (Yale), @AlexiSavov and @OlivierWang1 (NYU) Sign up now: macrofinancesociety.org/mfs-virtual-su…

Excellent article by @izakaminska on the risks of “banking on deposits.”

@seema_amble @rexsalisbury @FDICgov @WSJ @AlexiSavov @idrechs I’d like to see that too. Unfortunately, banks don’t break out commercial vs retail deposits. You could take out large time deposits (mostly commercial) but there is no further breakdown.

@schnabl_econ @rexsalisbury @FDICgov @WSJ @AlexiSavov @idrechs Yep but wanted to see the rates of commercial outflows vs consumer

Anyone seen this data on deposit flows and stickiness split by consumer vs commercial? (@FDICgov data via @WSJ) wsj.com/articles/bank-…

@rexsalisbury @seema_amble @FDICgov @WSJ This is monetary policy at work. When interest rates go up, banks raise deposits rates less than one-for-one, and deposits flow out of the banking system. For details, see my work with @AlexiSavov and @idrechs on the deposits channel of monetary policy: doi.org/10.1093/qje/qj…

@seema_amble @FDICgov @WSJ cc @schnabl_econ who probably knows. he did some research showing aggregate deposit betas thru Q4 '22 (link below), but no break out by consumer vs business. pages.stern.nyu.edu/~pschnabl/data…

🧵Bloomberg's Matt Levine writes today about the bank deposit franchise, and how the traditional bank model assumes deposits can be treated as long duration liabilities because customers are loyal and deposits sticky...

@HannoLustig Ok I'll bite. If you MTM the assets you should also MTM the deposit franchise. The deposit franchise has negative duration. If you leave it out, you miss half of banks' balance sheets. @AlexiSavov, @idrechs and I showed it in our JF paper. pages.stern.nyu.edu/~pschnabl/rese…

Surprising. I've yet to see a clear, compelling argument for not marking traded and liquid securities on a bank balance sheet to market. You'd have to argue it makes sense to close your eyes for long periods of time. 28% are Uncertain.

Happy to see my first (!!!) publication in the RFS (@SFSjournals)! And just in time to shed light on recent events in the banking sector. The paper uses a natural experiment to study how the health of lenders alters the strength of monetary policy. (1/n) doi.org/10.1093/rfs/hh…

@VStavrakeva Sorry, there is no Zoom option. Please contact Stephan Luck @StephanLuck if you cannot register without a password. He will help.

The NY Fed-NYU conference is on Friday, May 5th. All researchers are welcome. If you are interested, please register at the link below.

We posted data on bank-level deposit betas. This is a key measure of the value of the deposit franchise. The data is available here: pages.stern.nyu.edu/~pschnabl/data… With @AlexiSavov, @idrechs, and Dominik Supera.

Learn what #NYUStern Profs Viral Acharya, @schnabl_econ, and Lawrence J. White said in a recent panel moderated by @gilliantett @financialtimes about the fallout from the #SiliconValleyBank failure, banking stress, and the path forward: stern.nyu.edu/experience-ste…

The NY Fed-NYU Financial Intermediation conference is back in person on May 5 at the NY Fed. Open to all researchers, please join us.

@RobinBrooksIIF You are right that it is always the case that deposits flow out when the Fed raises rates. We (@AlexiSavov @schnabl_econ) documented and explained this in paper in the QJE in 2017 . We called it the "Deposits Channel of Monetary Policy": academic.oup.com/qje/article-ab…

Monetary policy does not exclusively affectdem. Room for sizably adverse supply-side effects on the financial system & capital formation process. This paper is worth your time: Credit Crunches and the Great Stagflation pages.stern.nyu.edu/~asavov/alexis… h/t @AlexiSavov, @schnabl_econ

Alexi Savov, Itamar Drechsler and I have a new note on how to estimate the deposit franchise value. This is a key factor when evaluating the stability of banks @AlexiSavov @idrechs

11.For more, check out the note with @schnabl_econ and @idrechs on bank interest rate risk and the deposit franchise: pages.stern.nyu.edu/~pschnabl/rese…

Great points by my colleague @arpitrage. For more on what SVB should have done to manage interest rate risk, check out this note with @AlexiSavov and Itamar Drechsler. pages.stern.nyu.edu/~pschnabl/rese…

SVB got in trouble for investing in MBS. It’s certainly not alone in doing so. Why do banks invest in assets like MBS in the first place? 1/