IDEAS home Printed from https://ideas.repec.org/p/fip/fednls/87107.html
   My bibliography  Save this paper

Banking Deserts, Branch Closings, and Soft Information

Author

Abstract

U.S. banks have shuttered nearly 5,000 branches since the financial crisis, raising concerns that more low-income and minority neighborhoods may be devolving into ?banking deserts? with inadequate, or no, mainstream financial services. We investigate this issue and also ask whether such neighborhoods are particularly exposed to branch closings?a development that, according to recent research, could reduce credit access, even with other branches present, by destroying ?soft? information about borrowers that influences lenders? credit decisions. Our findings are mixed, suggesting that further study of these concerns is warranted.

Suggested Citation

  • Donald P. Morgan & Maxim L. Pinkovskiy & Bryan Yang, 2016. "Banking Deserts, Branch Closings, and Soft Information," Liberty Street Economics 20160307, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:87107
    as

    Download full text from publisher

    File URL: https://libertystreeteconomics.newyorkfed.org/2016/03/banking-deserts-branch-closings-and-soft-information.html
    File Function: Full text
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paolo Emilio Mistrulli & Luca Antelmo & Maddalena Galardo & Iconio Garrì & Dario Pellegrino & Davide Revelli & Vito Savino, 2019. "Why do banks close? The geography of branch pruning," Questioni di Economia e Finanza (Occasional Papers) 540, Bank of Italy, Economic Research and International Relations Area.
    2. Yan, Yu & Qi, Shusen, 2021. "Childhood matters: Family education and financial inclusion," Pacific-Basin Finance Journal, Elsevier, vol. 65(C).
    3. Yuan, Kaibin & Li, Wanli & Zhang, Weijun, 2023. "Your next bank is not necessarily a bank: FinTech expansion and bank branch closures," Economics Letters, Elsevier, vol. 222(C).
    4. Keil, Jan & Ongena, Steven, 2024. "The demise of branch banking – Technology, consolidation, bank fragility," Journal of Banking & Finance, Elsevier, vol. 158(C).
    5. Mathis, Walter S. & Kahn, Peter A. & Tang, Shangbin & Berenbrok, Lucas A. & Hernandez, Inmaculada, 2024. "Empirically-derived, locally responsive travel time thresholds for optimal geographic supermarket access using national commuting data," Journal of Transport Geography, Elsevier, vol. 118(C).
    6. Jesse Keenan & Elizabeth Mattiuzzi, 2019. "Climate Adaptation Investment and the Community Reinvestment Act," Community Development Research Brief, Federal Reserve Bank of San Francisco, issue 05, pages 01-30.

    More about this item

    Keywords

    crisis; Soft information; banks; branches; deserts;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • G2 - Financial Economics - - Financial Institutions and Services

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:fip:fednls:87107. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Gabriella Bucciarelli (email available below). General contact details of provider: https://edirc.repec.org/data/frbnyus.html .

    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.