Isabella Müller

Isabella Müller
Current Position

since 10/18

Economist in the Department of Financial Markets

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

Research Interests

  • real effects of financial intermediation
  • financial intermediation
  • political economy of banking
  • financial stability
  • macroprudential policy

Isabella Müller joined the Department of Financial Markets as a doctoral student in October 2018. Her research focuses on financial intermediation and the political economy of banking.

Isabella Müller received her bachelor's degree from Maastricht University and her master's degree from Leipzig University. She also spent a semester at Universidad de Salamanca, Spain. In 2021 she was awarded the Lamfalussy Research Fellowship by the ECB.

Your contact

Isabella Müller
Isabella Müller
Mitglied - Department Financial Markets
Send Message +49 345 7753-761

Publications

Working Papers

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The Color of Corporate Loan Securitization

Isabella Müller Huyen Nguyen Trang Nguyen

in: IWH Discussion Papers, No. 22, 2022

Abstract

We examine whether banks manage firms’ climate transition risks via corporate loan securitization. Results show that banks are more likely to securitize loans granted to firms that become more carbon-intensive. The effect is more pronounced if banks have a lower willingness to adjust loan terms. Exploiting the election of Donald Trump as an exogenous shock that lowers transition risk, we show that banks respond by a lower securitization of loans given to firms that become more carbon-intensive. This is mainly driven by banks that have no or low preferences for sustainable lending and domestic lenders.

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A Note on the Use of Syndicated Loan Data

Isabella Müller Felix Noth Lena Tonzer

in: IWH Discussion Papers, No. 17, 2022

Abstract

Syndicated loan data provided by DealScan has become an essential input in banking research over recent years. This data is rich enough to answer urging questions on bank lending, e.g., in the presence of financial shocks or climate change. However, many data options raise the question of how to choose the estimation sample. We employ a standard regression framework analyzing bank lending during the financial crisis to study how conventional but varying usages of DealScan affect the estimates. The key finding is that the direction of coefficients remains relatively robust. However, statistical significance seems to depend on the data and sampling choice.

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Climate Change-Related Regulatory Risks and Bank Lending

Isabella Müller Eleonora Sfrappini

in: ECB Working Paper, No. 2670, 2022

Abstract

We identify the effect of climate change-related regulatory risks on credit real-location. Our evidence suggests that effects depend borrower's region. Following an increase in salience of regulatory risks, banks reallocate credit to US firms that could be negatively impacted by regulatory interventions. Conversely, in Europe, banks lend more to firms that could benefit from environmental regulation. The effect is moderated by banks' own loan portfolio composition. Banks with a portfolio tilted towards firms that could be negatively a affected by environmental policies increasingly support these firms. Overall, our results indicate that financial implications of regulation associated with climate change appear to be the main drivers of banks' behavior.

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