Lambertini, LuisaMukherjee, Abhik2021-08-092021-08-092021-08-092021-07-2110.1016/j.frl.2021.102349https://infoscience.epfl.ch/handle/20.500.14299/180452This paper estimates the impact of stress-testing on lending spreads. We use firm-level data onsyndicated loans matched with bank holding company (BHC) data in our panel regressions.Using a difference-in-difference framework, we find: (1) BHCs that failed the stress testsincreased their loan pricing; (2) Loan pricing is higher for all BHCs after the commencementof the stress tests. These findings suggest that stress-test failure leads to higher spreads in thesyndicated loan market after the great financial crisis.Bank stress testsLoan priceSyndicated loanstext::journal::journal article::research article