FRIC/Finance seminar with Philip Strahan, Carroll School of Management, Boston College
The Department of Finance and FRIC, Center for Financial Frictions, are proud to announce the upcoming seminar with Philip Strahan, Carroll School of Management, Boston College.
Philip Strahan will present:
Philip E. Strahan
Post-crisis stress tests have altered banks’ credit supply to small business. Banks most affected reduce credit supply and raise interest rates on small business loans. These banks price the implied increase in capital requirements from stress tests where they have local knowledge, and exit where they do not: quantities fall most in markets where stress-tested banks do not own branches, and prices rise mainly where they do. These supply reductions are concentrated among risky borrowers. Stress tests do not, however, reduce aggregate credit. Small banks seem to increase their share in geographies formerly reliant on stress-tested lenders.
Solbjerg Plads 3,
Room: Augustinus Fonden: Senate Meeting Room