IDEAS home Printed from https://ideas.repec.org/a/spr/anresc/v56y2016i1p253-271.html
   My bibliography  Save this article

Commercial bank locations and “banking deserts”: a statistical analysis of Milwaukee and Buffalo

Author

Listed:
  • Scott Hegerty

Abstract

Although Internet banking is now able to perform many of the functions associated with physical bank branches, these locations still play important roles within their neighborhoods. This is particularly true for low-income, inner-city areas, which often have relatively few traditional banks. This study compares the cases of Milwaukee and Buffalo, both northern “Rust Belt” cities that have experienced manufacturing and population decline. Using both GIS and statistical analysis at the block group level, we confirm the presence of inner-city “cold spots” in both cities using statistical measures. We also find that both bank density and distance are significantly correlated with income and other demographic and economic variables. Statistical tests show that banking “deserts” are poorer and less white than other block groups. Regression analysis shows that for Buffalo, but not Milwaukee, the number of banks in an area is significantly related to income, distance from the CBD, and population density; the vacancy rate is significant while racial makeup is not. Copyright Springer-Verlag Berlin Heidelberg 2016

Suggested Citation

  • Scott Hegerty, 2016. "Commercial bank locations and “banking deserts”: a statistical analysis of Milwaukee and Buffalo," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 253-271, January.
    • Handle: RePEc:spr:anresc:v:56:y:2016:i:1:p:253-271
    DOI: 10.1007/s00168-015-0736-3
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00168-015-0736-3
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s00168-015-0736-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:rre:publsh:v:34:y:2004:i:2:p:191-205 is not listed on IDEAS
    2. repec:rre:publsh:v:40:y:2010:i:1:p:53-69 is not listed on IDEAS
    3. Ozgur Emre Ergungor, 2010. "Bank Branch Presence and Access to Credit in Low- to Moderate-Income Neighborhoods," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(7), pages 1321-1349, October.
    4. Smith, Tony E. & Smith, Marvin M. & Wackes, John, 2008. "Alternative financial service providers and the spatial void hypothesis," Regional Science and Urban Economics, Elsevier, vol. 38(3), pages 205-227, May.
    5. Burkey, Mark L. & Simkins, Scott P., 2004. "Factors affecting the location of payday lending and traditional banking services in North Carolina," MPRA Paper 36043, University Library of Munich, Germany.
    6. Anping Chen & Marlon Boarnet & Mark Partridge & Christopher S. Fowler & Jane K. Cover & Rachel Garshick Kleit, 2014. "The Geography Of Fringe Banking," Journal of Regional Science, Wiley Blackwell, vol. 54(4), pages 688-710, September.
    7. Schuetz, Jenny & Kolko, Jed & Meltzer, Rachel, 2012. "Are poor neighborhoods “retail deserts”?," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 269-285.
    8. Gyoungju Lee & Hyunwoo Lim, 2009. "A Spatial Statistical Approach to Identifying Areas with Poor Access to Grocery Foods in the City of Buffalo, New York," Urban Studies, Urban Studies Journal Limited, vol. 46(7), pages 1299-1315, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Scott W. Hegerty, 2016. "Commercial bank locations and “banking deserts”: a statistical analysis of Milwaukee and Buffalo," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 253-271, January.
    2. Ian Dunham & Alec Foster, 2023. "FRINGE FINANCIAL ECOLOGIES AND PLACE‐BASED EXCLUSION: A Tale of Two Cities," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 47(6), pages 881-898, November.
    3. Goodstein, Ryan M. & Rhine, Sherrie L.W., 2017. "The effects of bank and nonbank provider locations on household use of financial transaction services," Journal of Banking & Finance, Elsevier, vol. 78(C), pages 91-107.
    4. Scott W. Hegerty, 2022. "Banking Deserts," City Size, and Socioeconomic Characteristics in Medium and Large U.S. Cities," Papers 2203.03069, arXiv.org.
    5. Megan Doherty Bea, 2023. "Relational foundations of an unequal consumer credit market: Symbiotic ties between banks and payday lenders," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 320-345, January.
    6. Scott W. Hegerty, 2021. "Bank Density, Population Density, and Economic Deprivation Across the United States," Papers 2105.07823, arXiv.org.
    7. Megan Doherty Bea, 2024. "A Life Course Perspective of Community (Non)Investment: Historical Financial Service Trajectories and Community Outcomes," Journal of Family and Economic Issues, Springer, vol. 45(2), pages 288-307, June.
    8. Katharina Allinger & Elisabeth Beckmann, 2021. "Prevalence and determinants of nonbank borrowing in CESEE: evidence from the OeNB Euro Survey," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1/21, pages 7-35.
    9. Eoin McLaughlin & Rowena Pecchenino, 2022. "Fringe banking and financialization: Pawnbroking in pre‐famine and famine Ireland," Economic History Review, Economic History Society, vol. 75(3), pages 903-931, August.
    10. Terri Friedline & Nancy Kepple, 2017. "Does Community Access to Alternative Financial Services Relate to Individuals’ Use of These Services? Beyond Individual Explanations," Journal of Consumer Policy, Springer, vol. 40(1), pages 51-79, March.
    11. Zibei Chen & Terri Friedline & Catherine M. Lemieux, 2022. "A National Examination on Payday Loan Use and Financial Well-being: a propensity score matching Approach," Journal of Family and Economic Issues, Springer, vol. 43(4), pages 678-689, December.
    12. W. Scott Langford & Harrison W. Thomas & Maryann P. Feldman, 2024. "Banking for the Other Half: The Factors That Explain Banking Desert Formation," Economic Development Quarterly, , vol. 38(2), pages 71-81, May.
    13. Hyoung Jun Kim & Bo Kyeong Lee & So Young Sohn, 2020. "Comparing spatial patterns of sole proprietorship and corporate payday lenders in Seoul, Korea," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(1), pages 215-236, February.
    14. Megan Doherty Bea & K. Bley, 2022. "(Un)conditional consumer protections in high‐cost lending regulation: Impacts on local lending geographies," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(4), pages 1561-1596, December.
    15. Anping Chen & Marlon Boarnet & Mark Partridge & Christopher S. Fowler & Jane K. Cover & Rachel Garshick Kleit, 2014. "The Geography Of Fringe Banking," Journal of Regional Science, Wiley Blackwell, vol. 54(4), pages 688-710, September.
    16. Alan J. Auerbach & Yuriy Gorodnichenko & Daniel Murphy, 2020. "Effects of Fiscal Policy on Credit Markets," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 119-124, May.
    17. Robin A. Prager, 2009. "Determinants of the locations of payday lenders, pawnshops and check-cashing outlets," Finance and Economics Discussion Series 2009-33, Board of Governors of the Federal Reserve System (U.S.).
    18. Eduardo Minuci & Scott Schuh, 2022. "Are West Virginia Banks Unique?," Working Papers 22-03, Department of Economics, West Virginia University.
    19. repec:rre:publsh:v:40:y:2010:i:1:p:53-69 is not listed on IDEAS
    20. Milonas, Kristoffer, 2017. "The effect of foreclosure laws on securitization: Evidence from U.S. states," Journal of Financial Stability, Elsevier, vol. 33(C), pages 1-22.
    21. Robert M. Hunt & Keith Wardrip, 2013. "Residential Migration, Entry, and Exit as Seen Through the Lens of Credit Bureau Data," Consumer Finance Institute discussion papers 13-4, Federal Reserve Bank of Philadelphia.

    More about this item

    Keywords

    R3;

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:anresc:v:56:y:2016:i:1:p:253-271. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.