The Decline of Big-Bank Lending to Small Business: Dynamic Impacts on Local Credit and Labor Markets

Brian S. Chen, Samuel G. Hanson, Jeremy C. Stein

NBER Working Paper No. 23843
Issued in September 2017

---- Acknowledgments ----

We are especially grateful to Bill Phelan, Mark Zoff and others at PayNet Inc. for helpful comments and for providing access to data. We thank Jack Brand, Peter Carroll, Victoria Ivashina, James Kirby, Karen Mills, Larry Nath, Raghuram Rajan, Rick Ruback, Peter Sands, David Scharfstein, Til Schuermann, Adi Sunderam, Chuck Withee, Royce Yudkoff, and seminar participants at BYU, Duke, Harvard, the NBER Summer Institute, and NYU for helpful comments. Hanson gratefully acknowledges funding from the Harvard Business School Division of Research. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

---- Disclosure of Financial Relationships for Brian S. Chen ----

I am employed as a part-time contractor for PayNet, Inc. which provided proprietary data used for some of the analysis in this article. However, the extent of the financial support paid by PayNet was significantly less than $5,000 as of the previous twelve months. In addition, PayNet did not have the right to review the paper prior to its circulation.

---- Disclosure of Financial Relationships for Samuel G. Hanson ----

August 11, 2017


Outside Activities since 2011

This document contains a list of professional activities beyond my main employment at Harvard

University. Please feel free to contact me with any questions about this disclosure statement.

Paid consulting:

 Academic consultant to former Treasury Secretary Timothy Geithner on his book about

the financial crisis, Stress Test: Reflections on Financial Crises: 2013–2014.

 Academic Consultant for The D. E. Shaw Group: 2014.

 Academic Consultant for Bracebridge Capital: 2015–present.

 Academic Consultant for the Federal Reserve Bank of Minneapolis: 2016.

Commission research:

 I was paid by The Clearing House Association in 2010 for the unpublished working

paper, “An Analysis of the Impact of ‘Substantially Heightened’ Capital Requirements on

Large Financial Institutions”.

Paid honoraria for papers:

 The Brookings Institution will pay me an honorarium for the paper “Strengthening and

Streamlining Bank Capital Regulation” in 2017.

 The Federal Reserve Bank of Kansas City paid me an honorarium for the paper “The

Federal Reserve's Balance Sheet as a Financial-Stability Tool” in 2016.

 The International Monetary Fund paid me an honorarium for the paper “An Evaluation of

Money Market Fund Reform Proposals” in 2015.

 The Banco Central de Chile paid me an honorarium for the paper “Forward Guidance in

the Yield Curve: Short Rates versus Bond Supply” in 2015.

 The Brookings Institution paid me an honorarium for the working paper “Government

Debt Management at the Zero Lower Bound” in 2014.

Paid speaking:

 HBS Investment Management Workshop, 2015-present.

 Speaker at Morgan Stanley Conference on Fixed Income Trading and Portfolio

Management 2013.


 As part of my work at Harvard Business School, I regularly write cases about hedge

funds, investment managers, and their strategies. I receive no compensation from these

managers for writing these cases, and the cases are not meant as endorsements of the

managers or their strategies.

 My research is and has been historically fully funded by the Division of Research at the

Harvard Business School.

---- Disclosure of Financial Relationships for Jeremy C. Stein ----

Outside Activities

September 2017

Jeremy C. Stein

Outside (Non-Harvard) Activities Since 2006

A. Compensated Activities*

Speaking Engagements

I have given paid talks for a number of financial firms, investor groups, academic institutions, and central banks.


Key Square Capital Management: consultant, July 2016-present.

BlueMountain Capital Management: consultant, 2015.

Guggenheim Partners: consultant, 2005-2007.

Commissioned Research

The Clearing House Association: “An Analysis of the Impact of ‘Substantially Heightened’ Capital Requirements on Large Financial Institutions,” unpublished paper with Anil Kashyap and Samuel Hanson, 2010.

Honoraria for Papers

Federal Reserve Bank of Kansas City, for “Rethinking Capital Regulation,” with Anil Kashyap and Raghuram Rajan, 2008.

Federal Reserve Bank of Kansas City, for “The Federal Reserve’s Balance Sheet as a Financial Stability Tool,” with Robin Greenwood and Sam Hanson, 2016.

Brookings Institution, for “Strengthening and Streamlining Bank Capital Regulation,” with Robin Greenwood, Sam Hanson and Adi Sunderam, 2017.

Public Service

Federal Reserve Board: Governor, May 2012-May 2014.

U.S. Treasury Department: Senior Advisor to the Secretary; and concurrently, staff of National Economic Council, February-July 2009.


Quarterly Journal of Economics: co-editor, 2011-2012.

Journal of Economic Perspectives: co-editor, 2007-2008.

Study Center, Gerzensee, Switzerland: summer-school course, 2011.

Northwestern University: visiting scholar, 2009.

B. Significant Non-Compensated Activities

Harvard Management Company: Board of Directors, 2015-present.

American Finance Association: President, 2008; President-Elect, 2007; Vice-President, 2006; Board of Directors, 2009-2011.

Financial Advisory Roundtable, Federal Reserve Bank of New York, 2006-2012.

Squam Lake Group, 2008-2012.


*Excludes honoraria from non-profit institutions, government agencies, and academic journals of $3,000 or less in a given year, and payments from for-profit firms of $500 or less in a given year.

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