Financial Innovation

Table 5 Impact of Dodd-Frank Act on bank small business credit supply

From: Regulatory constraint and small business lending: do innovative peer-to-peer lenders have an advantage?

	Bank small business lending
	(1)	(2)	(3)	(4)
	SBLoan	SBLoan	SBLoan	SBLoan
Treated*DFA	− 0.628**	− 0.346**	− 0.333**	− 0.116***
	(− 4.607)	(− 4.843)	(− 5.368)	(− 8.123)
Size	0.554***	0.692***	0.713***	0.947***
	(7.956)	(14.933)	(16.550)	(27.115)
TRBCapital	0.354***	− 0.015	− 0.006	0.030
	(12.225)	(− 0.695)	(− 0.229)	(1.556)
CoreCapital	0.029	0.089**	0.086*	0.045***
	(2.035)	(3.732)	(3.093)	(4.266)
CoreTier1	− 0.432***	− 0.040	− 0.048	− 0.067***
	(− 13.811)	(− 2.143)	(− 1.865)	(− 3.453)
Deposits	0.023***	− 0.008	− 0.009	0.005**
	(6.921)	(− 1.632)	(− 2.296)	(2.221)
NPL	− 0.024**	− 0.009	− 0.008	− 0.010***
	(− 4.715)	(− 1.937)	(− 1.538)	(− 3.836)
ROE	0.005**	− 0.001	− 0.000	− 0.002*
	(3.501)	(− 0.508)	(− 0.226)	(− 1.769)
ROA	− 0.019	− 0.005	− 0.013	0.029*
	(− 0.611)	(− 0.222)	(− 0.582)	(1.823)
Capital	0.084***	− 0.023	− 0.021	0.010
	(6.494)	(− 1.356)	(− 1.015)	(1.057)
Bank FE		Yes	Yes	Yes
County FE			Yes	Yes
Year FE				Yes
Obs	21,676	21,584	21,576	21,576
Adj. R²	0.430	0.878	0.885	0.898

Table 5 shows the difference-in-differences estimation results in Eq. (1). The dependant variable SBLoan is the bank level total loan volume. The variable Treated takes on the value 1 for the banks with assets over $10 billion and zero for the banks with assets right below $10 billion. DFA is the treatment dummy that takes the one from July 2010 onwards and zero prior to that date. Standard errors are clustered at the bank level and shown in parentheses. Statistical significance at the 10%, 5% and 1% levels is denoted by^*,^** and ^***, respectively.t-statistics are presented in parentheses

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