Stress Tests and Small Business Lending

 

Topic: Stress Tests and Small Business Lending

 

Speaker: Kristle Cortes, UNSW

 

Post-crisis stress tests have altered banks’ credit supply to small business. Banks affected by stress-tests reduce credit supply and raise interest rates on small business loans. This supply reduction is concentrated among risky borrowers. Interest rates increase where banks have branches near borrowers; otherwise, loan quantities decline. Hence, banks price the implied increase in capital from stress tests where they have local knowledge, and exit markets where they do not. The decline in credit supplied by stress-tested banks does not lead to aggregate declines. Small banks step in, increasing their share in geographies formerly reliant on stress- tested lenders.

 

A light lunch will be provided at 1p.m. Please RSVP for catering purposes to Mala Kapahi by 12 noon on Monday 12th March 2018.

 

Time: 12.00 – 1.00 p.m.

Venue: University of Technology, Sydney

             Building 8, Room 8.002, Dr Chau Chak Wing Building
             Dr Chau Chak Wing Building

            14 - 28 Ultimo Road, Ultimo

 

 

Enquiries: Mala Kapahi (Ph: +61 2 9514 7777)