Cleveland Fed paper examines stress tests’ impact on lending


Stress-testing can reduce some individual banks’ lending to small businesses, but on aggregate lending is unchanged, a paper published by the Federal Reserve Bank of Cleveland finds.

Yuliya Demyanyk evaluates the effects of the Fed’s stress tests on US small business lending from 2012–15. She measures whether banks that are required to raise their capital ratios – which they call “stress-test exposure” – cut their lending to small firms.

The paper finds that banks with higher stress-test

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account