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http://arks.princeton.edu/ark:/88435/dsp01cz30pw72t| Title: | Bank branch closures from 2008–2016: Unequal impact in America’s heartland |
| Contributors: | Richardson, Jason Mitchell, Bruce Franco, Juan Xu, Yichen |
| Keywords: | Banks and banking—United States Global Financial Crisis, 2008-2009 Bank failures—United States United States—Race relations—Economic aspects |
| Issue Date: | 8-May-2017 |
| Publisher: | National Community Reinvestment Coalition |
| Place of Publication: | Washington, D.C. |
| Description: | The decrease in bank branch locations in the wake of the 2007-2008 financial crisis and Great Recession has diminished access to financial services for people in both rural and urban areas. Loss of access to financial services has disproportionately increased the reliance on expensive alternative financial services by low-income working families and minorities. Additionally, the loss of branch banking access impedes small business lending, hampering capital availability to the primary engine of U.S. economic growth. This study finds that: • 6,008 of 95,018 branches were lost between 2008 and 2016. This represents over 6% of branches nationally. Of the losses, 4,941 (82%) were in urban zip codes and 1,067 (18%) were in rural areas. • Several metro areas lost 15%-25% of their branches. Losses were especially acute in Baltimore, Chicago, Philadelphia, Las Vegas, and Detroit. • 86 new banking deserts were created in rural areas during the period. These are service gaps in which there were no banks within 10 miles of populated areas. Because of their already diminished market access, rural areas are especially vulnerable to banking deserts. • Banking deserts disproportionately impacted minorities, with 25% of all rural closures in majority-minority census tracts. The Hispanic population of rural banking deserts is 100% higher than in non-desert tracts; the Native American population is 55% higher. |
| URI: | http://arks.princeton.edu/ark:/88435/dsp01cz30pw72t |
| Related resource: | https://ncrc.org/bank-branch-closures-from-2008-2016-unequal-impact-in-americas-heartland/ |
| Appears in Collections: | Monographic reports and papers (Publicly Accessible) |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| NCRC_Branch_Deserts_Research_Memo_050517_2.pdf | 716.29 kB | Adobe PDF | View/Download |
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