Amiyatosh Purnanandam

I'm a Professor of Finance at the Ross School of Business at the University of Michigan. I will be joining McCombs School of Business at the University of Texas, Austin as a Professor of Finance in Summer 2025.

My research covers a wide range of topics in banking, FinTech, mortgage, and corporate finance. My recent research work is mostly related to deposit insurance, digital payments, and measurement & detection of risk in banking.

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Research

My research interests span several key areas in finance. In banking, I focus on the relationship between banking and the real economy, measurement and monitoring of risk in banks, and bank loans. I have worked on several topics in real estate and mortgages, particularly studying the subprime mortgage crisis and the RMBS market. In the FinTech space, I research digital payments and online lending platforms. In corporate finance, I study risk management, IPOs & SEOs, capital structure, and security design. I also conduct research in credit risk, analyzing default risk and security returns, as well as the modeling of credit risk.

Below are some of my recent research works. Please check my Google Scholar page or my research page for more details.

We examine the financial stability implications of deposit insurance using reciprocal deposits, a financial innovation through which banks can break up large deposits and place them with others in an offsetting manner. We show that higher insurance coverage allowed banks to stem deposit outflows during the 2023 banking crisis. Network banks paid lower deposit rates, grew larger, and expanded their local deposit market share, while assuming greater exposure to interest rate risk. We discuss the trade-offs of deposit insurance and its impact on the banking sector's industrial organization.

We construct a novel and comprehensive database of the branches of all financial services providers, including banks and nonbank financial institutions, at the county level over 1920-2000 from Yellow Pages published in Indiana, Michigan, and Ohio. We find that about one-third of these branches are shadow banks, i.e., non-regulated entities, and that there is strong county-specific persistence in both the number of branches and the share of shadow banks over time. We examine the statistical and economic implications of these findings for extant empirical literature on the effect of finance on real outcomes.

Miscellanea

Design and source code from Jon Barron's website