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January 13, 2016 Winning the Powerball Jackpot Leads to Greater Bank Lending When U.S. lottery jackpot winners of Powerball and Mega Millions deposit their winnings, those banks experience a large increase in deposits and total lending, according to a study by Carlos Parra at the University of Texas. The jackpot winners’ deposits lead to a significant increase in bank deposits (4.05% yearly change) and an increase in small business lending in the area (4.28% yearly change). Because their deposits lead to greater total lending to small businesses but not an increase in the probability of a business receiving lending, one interpretation of the findings is that on average the increase in lending is to current clients and not new clients, the author writes. Source: Deposit Shocks and Credit Supply: Evidence from U.S. Lottery Winners

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