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Religion and branch banking

Author

Listed:
  • Lee, Junyong
  • Lee, Kyounghun
  • Oh, Frederick Dongchuhl

Abstract

This study aims to examine whether religion influences branch banking. Using a large sample of U.S. county-level branch banking and religious characteristics data between 1994 and 2018, we find that the local religiosity of the bank headquarters’ region is positively related to the presence of bank branches. By contrast, banks in regions with more Catholics than Protestants are less likely to have branches. Moreover, religious diversity negatively affects branch banking. Overall, our study highlights the significant role of local religions in branch-banking decisions.

Suggested Citation

  • Lee, Junyong & Lee, Kyounghun & Oh, Frederick Dongchuhl, 2024. "Religion and branch banking," Journal of Financial Intermediation, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:jfinin:v:60:y:2024:i:c:s1042957324000433
    DOI: 10.1016/j.jfi.2024.101115
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    More about this item

    Keywords

    Branch banking; Religion; Religiosity; Religious diversity;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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