There is considerable heterogeneity in the organizational structures of CMBS loan originators and in their incentives for underwriting risky loans. We treat an originator's organizational type - commercial bank, investment bank, insurance company, finance company, conduit lender, or...

We investigate one channel through which the annual bank stress tests, as part of the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR) review, could unexpectedly affect the provision of bank credit. To quantify the impact of the stress tests on lending, we compare the...

We use bank-firm matched data to study how the capital buffers that large U.S. banks must satisfy to “pass” the Federal Reserve’s stress tests impact banks’ lending and firms’ loan volumes, overall debt, investment, and employment. We find that larger stress-test capital buffers lead...