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Formal and informal financing in a Chicago neighborhood

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  • Philip Bond
  • Robert M. Townsend

Abstract

This article documents not only the actual use of banks, but also the widespread use of alternative financing mechanisms, using data from a survey of households and businesses in a Hispanic neighborhood of Chicago.

Suggested Citation

  • Philip Bond & Robert M. Townsend, 1996. "Formal and informal financing in a Chicago neighborhood," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 20(Jul), pages 3-27.
    • Handle: RePEc:fip:fedhep:y:1996:i:jul:p:3-27:n:v.20no.4
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    File URL: http://www.chicagofed.org/digital_assets/publications/economic_perspectives/1996/epjul96.pdf
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    References listed on IDEAS

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    Cited by:

    1. Maude Toussaint-Comeau, 2017. "Competitiveness of Ethnic Minority Neighborhoods in Metropolitan Areas in the Seventh District," Profitwise, Federal Reserve Bank of Chicago, issue 4, pages 4-25.
    2. Edward Simpson Prescott, 1997. "Group lending and financial intermediation: an example," Economic Quarterly, Federal Reserve Bank of Richmond, issue Fall, pages 23-48.
    3. Maude Toussaint-Comeau, 2005. "Do enclaves matter in immigrants’ self-employment decision?," Working Paper Series WP-05-23, Federal Reserve Bank of Chicago.
    4. Arash Kordestani & Setayesh Sattari & Kaveh Peighambari & Pejvak Oghazi, 2017. "Exclude Me Not: The Untold Story of Immigrant Entrepreneurs in Sweden," Sustainability, MDPI, vol. 9(9), pages 1-22, September.
    5. Wenli Li, 1998. "Government loan, guarantee, and grant programs: an evaluation," Economic Quarterly, Federal Reserve Bank of Richmond, issue Fall, pages 25-52.
    6. Brian Mantel, 2000. "Why don't consumers use electronic banking products? towards a theory of obstacles, incentives, and opportunities," Occasional Paper; Emerging Payments EPS-2000-1, Federal Reserve Bank of Chicago.
    7. Thakor, Anjan V., 2021. "Politics, credit allocation and bank capital requirements," Journal of Financial Intermediation, Elsevier, vol. 45(C).
    8. Aaronson, Daniel & Bostic, Raphael W. & Huck, Paul & Townsend, Robert, 2004. "Supplier relationships and small business use of trade credit," Journal of Urban Economics, Elsevier, vol. 55(1), pages 46-67, January.
    9. Daniel Aaronson & Paul Huck & Robert M. Townsend, 2000. "Small business access to trade credit: some evidence of ethnic differences," Proceedings 672, Federal Reserve Bank of Chicago.
    10. Sondra Beverly & Amanda Moore & Mark Schreiner, 2001. "A Framework of Asset-Accumulation Stages and Strategies," Development and Comp Systems 0109004, University Library of Munich, Germany.
    11. Brian Mantel, 2000. "Why do consumers pay bills electronically? an empirical analysis," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 25(Q IV), pages 32-48.
    12. Mark Schreiner, 2001. "Microenterprise in the First and Third Worlds," Development and Comp Systems 0108001, University Library of Munich, Germany, revised 27 Dec 2001.
    13. Sherrie L. W. Rhine & Maude Toussaint-Comeau, 2000. "Increasing participation in mainstream financial markets by black households," Consumer and Community Affairs Policy Studies 2000-4, Federal Reserve Bank of Chicago.
    14. Sherrie L. W. Rhine & Maude Toussaint-Comeau, 2000. "Access to credit and financial services among black households," Consumer and Community Affairs Policy Studies 2000-1, Federal Reserve Bank of Chicago.
    15. Philip Bond & Paul Huck & Sherrie L. W. Rhine & Robert M. Townsend, 1999. "Small business finance in two Chicago minority neighborhoods," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 23(Q II), pages 46-62.

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