Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/191477
Year of Publication: 
2015
Series/Report no.: 
IRENE Working Paper No. 15-06
Publisher: 
University of Neuchâtel, Institute of Economic Research (IRENE), Neuchâtel
Abstract: 
Using a unique data set based on US commercial banks and county level loan origination for the period 2005-2010, we measure whether banks that benefited from the Troubled Asset Relief Program (TARP) increase small business loan originations. We propose an identification strategy which exploits the ownership structureof bank holding companies. We find that TARP banks provide on average 19% higher small business loan originations than NO TARP banks. The disaggregated data allows us to control for the potential demand side effects. When considering poverty and unemployment rates at a county level we show that TARP is effective only in counties suffering from unemployment. Several robustness checks confirm the main result.
Subjects: 
TARP
Financial Crisis
Loan provision
JEL: 
C23
E58
G21
G28
Document Type: 
Working Paper

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